Business Industry

Assam’s Rs 27,000 Crore Semiconductor Plant to Boost India’s Chip Industry

The Ministry of Electronics and IT has announced that Tata Semiconductor Assembly and Test Pvt Ltd’s Rs 27,000 crore semiconductor manufacturing plant in Morigaon, Assam, is on track to be completed by mid-2025.

The facility is expected to revolutionize India’s semiconductor ecosystem with its ability to produce up to 48 million chips daily, leveraging advanced packaging technologies like flip chip and Integrated System in Package (ISIP).

Boost for Critical Sectors and Regional Economy

Targeting sectors such as automotive, electric vehicles, telecommunications, and consumer electronics, the Morigaon plant is set to become a cornerstone of India’s semiconductor manufacturing ambitions. Additionally, the facility is projected to create 15,000 direct and 11,000-13,000 indirect jobs, driving economic growth in Assam and surrounding areas.

The high-capacity plant will cater to both domestic and international markets, cementing India’s position in the global semiconductor supply chain. Industry estimates project India’s semiconductor market to grow from $38 billion in 2023 to $109 billion by 2030.

Strengthening India’s Semiconductor Mission

The Morigaon facility aligns with the India Semiconductor Mission (ISM), which aims to develop a self-sufficient semiconductor ecosystem. Launched in 2021 with a financial outlay of Rs 76,000 crore under the Semicon India program, the initiative promotes domestic semiconductor manufacturing through incentives and strategic partnerships.

The program includes four key schemes for establishing semiconductor fabs, display fabs, compound semiconductor fabs, and Semiconductor ATMP/OSAT facilities in India, as well as a Design Linked Incentive (DLI) scheme.

Expanding Semiconductor Infrastructure

The Union Cabinet has approved additional semiconductor facilities across the country, including projects by Tata Electronics and CG Power in Gujarat, and Kaynes Semicon Pvt Ltd in Sanand. The modernization of the Semi-Conductor Laboratory in Mohali and implementation of the SPECS and PLI schemes further strengthen India’s semiconductor infrastructure.

With global demand for semiconductors surging, India’s expanding chip ecosystem is expected to drive innovation, create jobs, and position the nation as a leading player in the global digital economy, the Ministry added.

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