Qualcomm Tata Deal Puts India At Center Of Auto Chip Growth

Simply Wall St

Mon, February 23, 2026 at 5:06 PM GMT+9 4 min read

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Qualcomm (NasdaqGS:QCOM) and Tata Electronics agreed to manufacture automotive modules in India.

The partnership will use Tata Electronics' new OSAT facility in Assam for semiconductor assembly and testing.

The project is described as India's first indigenous semiconductor assembly and testing facility focused on automotive modules.

The collaboration is intended to support global demand for automotive electronics and strengthen local supply chains.

For Qualcomm, which is known for wireless and semiconductor technologies, the automotive segment has become an important part of its broader chip and platform business. Partnering with Tata Electronics’ new OSAT facility ties the company more closely to India’s manufacturing build out, particularly around auto electronics and semiconductor back end work. For investors, the move sits at the intersection of auto electrification, connectivity and regional supply chain diversification.

Looking ahead, the agreement gives Qualcomm a local base in India for automotive module production that may help support customers across multiple regions. It also aligns the company with policy goals under the Make in India program and may help create a deeper engineering and supplier ecosystem around its automotive offerings.

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This partnership sits right at the heart of Qualcomm’s push to make automotive a bigger contributor alongside handsets. Outsourcing assembly and testing of auto modules to Tata’s OSAT facility in Assam gives Qualcomm a way to support automaker demand without having to own heavy manufacturing assets itself. It also ties neatly into Qualcomm’s wider India footprint, including its planned US$150m Strategic AI Venture Fund for local AI and deep tech startups, which could feed future automotive software and connectivity use cases. For you as an investor, the key takeaway is that Qualcomm is trying to shift more of its growth story toward vehicles, connectivity and on-device AI, while smartphone-facing headwinds like memory constraints are still in the background.

How This Fits Into The QUALCOMM Narrative

The deal supports the narrative that automotive and IoT can gradually take a larger share of Qualcomm's mix, reducing dependence on single customers and pure handset cycles.

Execution risk in new supply chain setups like Assam could challenge the idea that diversification will automatically translate into smoother margins and earnings.

The Make in India manufacturing angle and closer ties with Tata are not fully captured in the existing narrative, which focuses more on data center and AI accelerators than on regional manufacturing depth.

 






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The Risks and Rewards Investors Should Consider

⚠️ Execution and supply chain risks if the new Assam OSAT facility ramps more slowly than expected or faces quality and yield issues.

⚠️ Qualcomm still faces smartphone cycle pressures and memory constraints, so auto-focused moves may not fully offset weaker Android volumes in the short term.

🎁 The partnership can support Qualcomm's goal of growing its automotive business and broaden its customer reach across software-defined vehicles.

🎁 Closer integration into India's semiconductor ecosystem, alongside Qualcomm's AI investments, could create a pipeline of local partners and customers over time.

What To Watch Going Forward

From here, you will want to track how quickly Tata’s Assam facility reaches commercial volumes for Qualcomm’s automotive modules and which global or Indian automakers are referenced as early adopters. Watch how Qualcomm positions this partnership versus rivals like NVIDIA and Intel in areas such as digital cockpits and connected-car platforms. It is also worth keeping an eye on any updates around the US$150m Indian AI fund, because those portfolio companies could later connect into Qualcomm’s auto and edge-computing offerings. Finally, monitor whether analysts start to talk more about automotive in their Qualcomm earnings models, relative to smartphones.

To ensure you’re always in the loop on how the latest news impacts the investment narrative for QUALCOMM, head to the community page for QUALCOMM to never miss an update on the top community narratives.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include QCOM.

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