India’s Tata signs up Intel as first major customer for $14 billion chip foray

India’s Tata Electronics has secured Intel as the first prospective customer for its upcoming chip facilities, potentially signalling the U.S. chipmaker’s confidence in India’s manufacturing ambitions.

The electronics-manufacturing arm of the 156-year-old salt-to-software Tata group is investing about $14 billion to build India’s first semiconductor fabrication facility in Gujarat state and a chip assembly and testing facility in the state of Assam.

Prime Minister Narendra Modi has been pushing for India to rival global semiconductor powerhouses such as Taiwan, aiming to make the country a chipmaker for the world despite initial setbacks.

Intel and Tata Electronics will also explore the opportunity to rapidly scale AI PC solutions for consumer and enterprise markets in India, which they say is projected to be a global top-five market by 2030.