Analog Devices (ADI) has entered into a partnership with India’s Tata Group to explore semiconductor manufacturing in the country, signaling a significant step towards bolstering India’s position in the global chip market. The announcement was made on Wednesday, highlighting the collaboration between the U.S. chipmaker and Tata Electronics, the manufacturing arm of the Tata conglomerate.

Tata Group is investing a substantial $14 billion to construct India’s first semiconductor fabrication facility in Gujarat, alongside a chip-assembly and testing facility in Assam. This initiative received government approval earlier this year, marking a pivotal moment in India’s ambition to become a key player in the global semiconductor landscape.

Under this partnership, ADI and Tata Electronics aim to explore opportunities to manufacture ADI’s semiconductor products at the new facilities. Although specific product details have yet to be disclosed, the collaboration aligns with Prime Minister Narendra Modi’s vision of establishing India as a competitive alternative to global semiconductor powerhouses like Taiwan.

In addition to manufacturing, Tata Group plans to integrate ADI’s semiconductor products into its electric vehicles produced by Tata Motors and enhance telecommunications infrastructure through Tejas Networks. This strategic alliance underscores the growing interest from global semiconductor companies, as firms like NXP Semiconductors and Micron also announce plans to invest and establish manufacturing facilities in India.

With ongoing investments and partnerships, India is positioning itself to become a significant player in the semiconductor industry, catering to both domestic needs and international markets.