US semiconductor leader Qualcomm Technologies has entered into a manufacturing agreement with Tata Electronics to produce automotive semiconductor modules at Tata’s upcoming assembly and test facility in Assam, marking a significant step in India’s push to become a global electronics manufacturing hub. The announcement underscores both companies’ strategic interest in diversifying supply chains and tapping into the rapidly evolving automotive technology ecosystem.

Production will take place at Tata Electronics’ outsourced semiconductor assembly and test (OSAT) plant in Jagiroad, which is currently under development. The facility is part of India’s broader semiconductor mission aimed at building domestic capabilities across the chip value chain from design to packaging.

The agreement brings Tata Electronics into Qualcomm’s global manufacturing ecosystem for automotive modules, a segment that is witnessing strong growth as vehicles become increasingly software-driven and connected. Automotive semiconductor demand has surged in recent years due to the rise of electric vehicles, advanced driver assistance systems, connected car features, and in-vehicle digital experiences.

Qualcomm’s Automotive Modules integrate the company’s Snapdragon Digital Chassis system-on-chips with essential system components into ready-to-deploy platforms. These modules enable functions such as digital cockpits, infotainment systems, connectivity solutions, and advanced vehicle intelligence. By offering pre-integrated modules rather than discrete components, the company aims to help automakers accelerate development cycles and reduce complexity as they transition toward software-defined vehicle architectures.

For Tata Electronics, the partnership represents a major step in moving up the semiconductor value chain from electronics manufacturing toward high-technology packaging and system integration. CEO and Managing Director Randhir Thakur indicated that the company plans to leverage its Integrated Systems Packaging capabilities to deliver high-performance solutions tailored for Qualcomm’s automotive portfolio. This signals Tata’s intent to position itself not merely as a contract manufacturer but as a strategic technology partner.

Qualcomm executives framed the deal as part of a broader shift toward regionalised manufacturing. Nakul Duggal, who oversees automotive and embedded segments at Qualcomm Technologies, described expanding regional production capacity as essential as the industry moves toward module-based designs. Meanwhile, Qualcomm India President Savi Soin emphasised that manufacturing in India would enhance the company’s flexibility in serving global original equipment manufacturers.

The localisation of production is also aligned with the Indian government’s “Make in India” initiative, which seeks to reduce dependence on imported electronics and semiconductors. Automotive chips are particularly critical because supply disruptions during the pandemic exposed vulnerabilities in global supply chains, forcing carmakers worldwide to halt production.

From a business perspective, the partnership could strengthen India’s attractiveness as a destination for high-value electronics manufacturing. Unlike traditional electronics assembly, semiconductor packaging and testing involve sophisticated processes, skilled labour, and tighter integration with design ecosystems. Establishing such capabilities domestically may encourage additional investments from global chipmakers and auto technology firms.

For the automotive sector, the development is especially relevant as vehicles transition from mechanical machines to software platforms on wheels. Modern cars increasingly rely on centralized computing architectures, high-speed connectivity, and over-the-air update capabilities areas where Qualcomm has been aggressively expanding beyond smartphones.