India notched two major technology wins this week as Microsoft Corp (NASDAQ:MSFT) revealed its largest-ever Asia investment after Intel Corp (NASDAQ:INTC) moved to strengthen its semiconductor partnership with the Tata Group.
Microsoft Bets Big On India's AI Future
On Tuesday, Microsoft CEO Satya Nadella announced a $17.5 billion investment over four years following his meeting with Prime Minister Narendra Modi in New Delhi.
The commitment, which runs from 2026 to 2029, will fund expanded cloud capacity, AI infrastructure, skills development and sovereign digital capabilities.
Modi took to X and said the conversation left him confident about India's role in the global AI race, noting that the "world is optimistic about India."
Nadella echoed that sentiment, calling the meeting "inspiring" and saying Microsoft is committed to supporting India's AI-first future.
See Also: Microsoft Pours Billions Into AI Push, Announcing Historic Expansion In Canada
The investment builds on the $3 billion Microsoft pledged earlier this year, which the company expects to deploy by the end of 2026.
Microsoft closed at $492.02 on Tuesday, up 0.20% but slipped to $491.68 in after-hours trading. Year-to-date, the company has gained 17.55%, according to Benzinga Pro.
Intel Signals Stronger Commitment To India's Chip Push
Modi also met Intel CEO Lip-Bu Tan, who praised India's semiconductor strategy and said Intel is encouraged by India's policy framework and sees "tremendous potential" for collaboration across computing and manufacturing.
The Indian Prime Minister shared Tan's post on X and said, "I am sure Intel will have a great experience working with our youth."
The meeting comes as Intel and the Tata Group deepen their alliance to strengthen India's semiconductor and electronics ecosystem. Earlier this week, the companies signed a memorandum of understanding to explore chip manufacturing and advanced packaging at Tata Electronics' upcoming facilities.
Tata Accelerates Ambitions With $14 Billion Investments
Tata Electronics is investing about $14 billion to build India's first semiconductor fabrication plant in Gujarat and a chip assembly and testing facility in Assam.
Intel has emerged as a prospective customer, signaling growing international confidence in India's chip capabilities.
The companies will also evaluate ways to scale AI-powered PCs using Intel reference designs and Tata's manufacturing expertise, aligning with India's goal of becoming a top-five global PC market by 2030.
Intel shares are down 0.17% in after-hours trading. It gained 0.50% during the regular hours. In the past five days, Intel shares have dropped by 6.94%.
Benzinga’s Edge Stock Rankings put Microsoft in the 98th percentile for Growth and 73rd for Quality. Click here to see how the company performs in other metrics against its competitors.
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