Tata Electronics has secured Intel as a key partner in advancing India's semiconductor supply chain and accelerating AI PC production, marking a pivotal move in the country's tech manufacturing ambitions. The collaboration targets domestic chip assembly, test, and packaging capacity with plans to deploy advanced AI-enabled devices by 2026.
- Tata Electronics to supply Intel with ATP services for AI PCs starting 2026
- Target capacity: 15 million units annually by 2027
- ₹4,200 crore ($500 million) in R&D and infrastructure investment
- Support for Intel’s 10nm and 7nm process nodes
- 5,000+ jobs expected across engineering and operations
- TCS and Infosys involved in AI firmware and cloud integration
Tata Electronics has formalized a strategic agreement with Intel to become a preferred supplier for semiconductor assembly, test, and packaging (ATP) services, reinforcing India's position in the global electronics value chain. The pact centers on establishing a scalable domestic infrastructure to support Intel's AI PC rollout across Asia-Pacific markets, with initial production slated to begin in early 2026 at Tata's integrated facilities in Pune and Hyderabad. Under the terms, Tata Electronics will ramp up its ATP capacity to handle over 15 million units annually by 2027, with a focus on advanced process nodes including 10nm and 7nm. This expansion will directly support Intel’s transition to AI-optimized processors, including the upcoming Meteor Lake and Lunar Lake architectures. The move comes amid global efforts to diversify semiconductor manufacturing beyond traditional hubs, with India emerging as a critical node in supply chain resilience strategies. The collaboration is expected to generate over 5,000 direct and indirect jobs in engineering, logistics, and operations, with additional investments of ₹4,200 crore ($500 million) in R&D and facility upgrades over the next three years. Indian IT firms TCS and Infosys are also engaged as system integrators and software enablers, supporting AI firmware development and cloud-based device management for the new AI PC line. Market analysts note that the partnership could catalyze a broader wave of foreign tech investment in India, particularly in semiconductor infrastructure. The development is especially significant given India’s current reliance on imported chips and the government’s Production Linked Incentive (PLI) scheme for electronics, which has already attracted commitments exceeding $10 billion across multiple players.