Tata working on building industry-specific AI chips: Tata Sons Chairman N Chandrasekaran

New Delhi: The Tata Group is expanding its presence across the artificial intelligence value chain — from data centres and software to semiconductors — and has begun developing industry-specific AI chips, Chairman Natarajan Chandrasekaran said on Thursday.

He said the group is building multiple AI layers, including industrial solutions, data infrastructure and vertical-focused applications.

Over time, Tata aims to produce AI-driven chips tailored to specific indus-tries, with the first expected to serve the automotive sector. While no timeline was shared, work has already commenced.

Tata has partnered with OpenAI to build an initial 100 MW AI capacity, scalable to 1 GW. Tata Consultancy Services (TCS) has also collaborated with AMD to create sustainable, high-density AI infrastructure aligned with global standards.

The group is developing an AI operating system for industrial use through TCS and Tata Communica-tions to support vertical-specific agentic AI solutions. In semiconductors, Tata Electronics is setting up a Rs 91,000-crore fabrication plant in Dholera, Gujarat, with Taiwan’s PSMC, initially producing 28-nanometre chips for sectors such as consumer electronics, IoT and automotive.

It is also establishing a Rs 27,000-crore chip packaging unit in Assam, expected to generate over 27,000 jobs.

Chandrasekaran said Tata is collaborating with global players including ASML, Tokyo Electron, Applied Materials, Qualcomm and Intel, describing AI and semiconductors as a major growth

opportunity.