Tata Electronics to Manufacture Intel Chips in Gujarat and Assam

In a major step toward strengthening India’s semiconductor and AI ecosystem, Tata Electronics and Intel Corporation have signed a Memorandum of Understanding (MoU) to explore chip manufacturing and advanced packaging collaboration in India.
The partnership aims to leverage Tata’s upcoming facilities in Dholera, Gujarat, and Guwahati, Assam, to produce and package Intel’s semiconductor products — a move that aligns with the India Semiconductor Mission (ISM) and supports the nation’s dream of becoming a global chip manufacturing hub.

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Tata Electronics to Manufacture Intel Chips in Gujarat and Assam

Key Objectives of the MoU

The agreement focuses on the following areas of collaboration:

Chip manufacturing at Tata’s Dholera Fab in Gujarat (under construction).
Packaging and testing (OSAT) of Intel products at Tata’s Guwahati facility in Assam.
Joint development in advanced packaging technologies.
Collaboration in AI-based PC solutions for consumer and enterprise markets in India.

These initiatives are designed to strengthen India’s semiconductor value chain and make the country a key player in the global chip supply network.

Industry Leaders on the Collaboration

N. Chandrasekaran, Chairman of Tata Sons, said this partnership will expand India’s technology ecosystem and help deliver advanced semiconductors to meet AI-driven global demand.
Lip-Bu Tan, CEO of Intel Corporation, highlighted the collaboration as a chance to scale rapidly in one of the world’s fastest-growing computing markets, powered by rising PC and AI adoption in India.

Tan’s visit to India — including meetings with Prime Minister Narendra Modi and IT Minister Ashwini Vaishnaw — underlines the strategic importance of this collaboration.

Tata’s Semiconductor Projects Under the India Semiconductor Mission (ISM)

1. Dholera Fab (Gujarat):

Approved on 29 February 2024 under ISM
Expected to start operations by 2027
Will employ around 2,000 people
India’s first government-approved chip fabrication facility

2. Guwahati OSAT Unit (Assam):

Focused on Outsourced Semiconductor Assembly and Testing (OSAT)
Handles chip packaging and final product readiness
Will strengthen downstream semiconductor capabilities in India

These projects are key to achieving a self-reliant semiconductor ecosystem, supported by government incentives and private investment.

What Are OSAT and Advanced Packaging?

OSAT (Outsourced Semiconductor Assembly and Testing):
It involves cutting, packaging, and testing silicon wafers before they’re used in electronic devices.
Advanced Packaging:
This process integrates multiple chips into one package, improving performance and efficiency — vital for AI and high-performance computing.

Both processes are crucial for building a complete semiconductor supply chain in India.

Key Takeaways

Tata Electronics and Intel signed an MoU for chip manufacturing and packaging in India.
Collaboration involves Dholera (Gujarat) for fabrication and Guwahati (Assam) for OSAT.
Focus areas: Advanced packaging, AI-based PC development, and supply chain strengthening.
Dholera fab is India’s first approved chip manufacturing facility, set to open by 2027.
Intel’s CEO Lip-Bu Tan is in India to discuss the initiative with key government leaders.

Exam-Oriented Key Facts

MoU Signed Between: Tata Electronics and Intel Corporation
Purpose: Semiconductor manufacturing and advanced packaging collaboration
Locations: Dholera (Gujarat) & Guwahati (Assam)
Under Mission: India Semiconductor Mission (ISM)
Dholera Fab Operational Year: 2027 (expected)
Intel CEO: Lip-Bu Tan
Tata Sons Chairman: N. Chandrasekaran
Focus Areas: AI technology, OSAT, chip packaging, semiconductor value chain

Question & Answer

Q1. Which two companies signed an MoU to collaborate on semiconductor manufacturing in India?
(a) Tata Electronics and Intel
(b) TCS and NVIDIA
(c) Wipro and AMD
(d) Infosys and Qualcomm
Answer: Tata Electronics and Intel

Q2. Under which government initiative does the Tata–Intel collaboration fall?
(a) Digital India Mission
(b) India Semiconductor Mission (ISM)
(c) Make in India 2.0
(d) AI Bharat Initiative
Answer: India Semiconductor Mission (ISM)

Q3. Tata’s upcoming semiconductor fabrication unit is located in which Indian state?
(a) Tamil Nadu
(b) Maharashtra
(c) Gujarat
(d) Karnataka
Answer: Gujarat

Q4. What is the expected operational year for Tata’s Dholera Fab facility?
(a) 2025
(b) 2026
(c) 2027
(d) 2028
Answer: 2027

Q5. What does OSAT stand for in semiconductor manufacturing?
(a) Original Semiconductor Assembly and Testing
(b) Outsourced Semiconductor Assembly and Testing
(c) Optical Silicon Assembly and Technology
(d) Operational Silicon Architecture Technique
Answer: Outsourced Semiconductor Assembly and Testing

Q6. Who is the current CEO of Intel Corporation as of this MoU announcement?
(a) Pat Gelsinger
(b) Lip-Bu Tan
(c) Satya Nadella
(d) Sundar Pichai
Answer: Lip-Bu Tan

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