India just landed two massive tech partnerships that could reshape its position in the global technology landscape. Microsoft Corp (MSFT) unveiled its biggest Asian investment ever, while Intel Corp (INTC) is moving forward with ambitious semiconductor plans alongside Tata Group. Both announcements came after meetings with Prime Minister Narendra Modi this week.
Microsoft's Historic Commitment
On Tuesday, Microsoft CEO Satya Nadella sat down with Modi in New Delhi and emerged with a $17.5 billion commitment spanning four years, from 2026 to 2029. It's a staggering sum that will fund expanded cloud capacity, AI infrastructure, skills development, and what Microsoft calls "sovereign digital capabilities."
Modi shared his thoughts on X, saying the conversation left him confident about India's role in the global AI race. The Prime Minister noted that the "world is optimistic about India." Nadella matched the enthusiasm, calling the meeting "inspiring" and reaffirming Microsoft's commitment to supporting India's AI-first future.
This new investment builds on the $3 billion Microsoft pledged earlier this year, which the company expects to deploy by the end of 2026. So we're talking about a total commitment north of $20 billion in just a few years.
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%.
Intel Signals Serious Interest in India's Chip Ambitions
Modi also met with Intel CEO Lip-Bu Tan, who praised India's semiconductor strategy and said Intel is encouraged by India's policy framework. Tan sees "tremendous potential" for collaboration across computing and manufacturing, which is exactly what you'd want to hear if you're trying to build a semiconductor industry from scratch.
The Prime Minister shared Tan's post on X and added, "I am sure Intel will have a great experience working with our youth."
The timing isn't coincidental. Earlier this week, Intel and Tata Group signed a memorandum of understanding to explore chip manufacturing and advanced packaging at Tata Electronics' upcoming facilities. It's a partnership that could give India real credibility in the global semiconductor supply chain.
Tata's Ambitious Semiconductor Push
Here's where things get interesting. 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. These aren't small ventures, and Intel has emerged as a prospective customer, which signals growing international confidence in India's chip capabilities.
The companies are also evaluating ways to scale AI-powered PCs using Intel reference designs and Tata's manufacturing expertise. This aligns perfectly with India's goal of becoming a top-five global PC market by 2030, which is ambitious but perhaps not unrealistic given the country's scale and trajectory.
Intel shares were down 0.17% in after-hours trading after gaining 0.50% during regular hours. In the past five days, Intel shares have dropped by 6.94%.
Why This Matters
These aren't just press release moments. India has been working hard to position itself as a technology manufacturing hub, not just a software services center. The semiconductor push is particularly significant given global supply chain concerns and the strategic importance of chip production.
When companies like Microsoft and Intel commit billions and send their CEOs for meetings with the Prime Minister, it suggests they see real opportunity beyond the usual diplomatic niceties. India's combination of talent, market size, and policy support is starting to attract the kind of investment that could genuinely shift the global tech landscape over the next decade.