From data centres to software to semiconductors, Tata Group is engaged heavily in building AI layers, and it has started working on industry-specific AI chips as well, Tata Sons Chairman N Chandrasekaran said on Thursday.
In an interview with PTI at the India AI Impact Summit 2026, Chandrasekaran said that AI is going to make a big impact and the Tata Group is working to build several layers from industrial solutions to data centres to vertical-specific AI solutions.
"We, over a period of time, want to build industry-specific AI-driven chips. That's the other major initiative that I talked about. It will take time. I can't give you a timeline. But the work has already started,” Chandrasekaran said.
3 February 2026
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Earlier in the day, he said that Tata Group is in the process of adopting AI across the stack while also looking to produce chips for multiple industries, with the first set expected to cater to the automotive sector.
Tata Group has partnered with OpenAI to build the first 100 megawatt capacity, which will scale to one gigawatt.
Its group firm TCS has made an announcement with AMD to create a sustainable high-density AI capacity in India for global standards.
“We are also building an AI operating system for industrial solutions which will be built by TCS and Tata Communications. We want to build it in such a way that we can build a lot of vertical agentic AI solutions on top of that,” Chandrasekaran said.
The AI technology ecosystem has several high-tech layers which include data centres where data is hosted, servers which store and manage data technologically, electronics and semiconductors that make servers etc.
The Indian government is promoting all elements of the AI ecosystem where companies like Tata Electronics, TCS, Tata Communications etc are engaged heavily.
Tata Electronics plans to build a mega semiconductor fabrication facility in Dholera, Gujarat, in partnership with Taiwanese firm PSMC, entailing a total investment of around Rs 91,000 crore.
Initially, the plant will produce chips with high nodes starting from 28 nanometers onwards. Chips with 28 nm node size are used mostly in consumer electronics products, IoT devices, automotive electronics, networking devices etc.
It is also setting up a chip packaging unit in Assam with an investment outlay of Rs 27,000 crore and is expected to generate over 27,000 direct and indirect jobs in the region.
Chandrasekaran said that there is a huge opportunity in the semiconductor space and there are a lot of things that the company needs to do.
“But we will need partners and an ecosystem where we will collaborate. So, we are working with a lot of people on semiconductors. We work with ASML, with Tokyo Electron, with Applied Materials. We work with a whole lot of players. Similarly, we work with players like Qualcomm, Intel,” Chandrasekaran said.
He said that Tata Group is also working with many other tech companies and European companies as well.
“It's not fair for me to list all the companies because there are many different partnerships and some are customers, some are suppliers, some co-create with us. So, I think it's a very exciting opportunity,” Chandrasekaran said.
He said that the company’s plants Dholera and Assam are getting a good response from all stakeholders.
