Tata’s semiconductor plant in Assam set to manufacture up to 48 mn chips daily

Tata Group's semiconductor assembly and testing facility in Morigaon, Assam, is set to make a major contribution to India's semiconductor production capabilities. With an investment of Rs 27,000 crore, the plant is expected to produce up to 48 million semiconductor chips daily, according to a government announcement on November 17.

The plant will utilize cutting-edge packaging technologies, including flip-chip and integrated system-in-package (ISIP), to cater to critical sectors such as automotive, electric vehicles, telecommunications, and consumer electronics. The facility is scheduled for completion by mid-2025.

In addition to technological advancements, the Morigaon plant will generate significant socio-economic benefits. It is expected to create around 15,000 direct jobs and 11,000 to 13,000 indirect jobs, providing a major boost to the local economy in Assam and surrounding regions. With high-volume production, the facility will serve both domestic and international markets, helping position India as a competitive player in the global semiconductor supply chain.

India's semiconductor market, valued at approximately $38 billion in 2023, is projected to grow to $109 billion by 2030, spurred by a combination of domestic demand and government initiatives to reduce reliance on imports. The India Semiconductor Mission (ISM) aims to establish a sustainable semiconductor ecosystem, positioning India as a leader in electronics manufacturing and design. The ISM is backed by international semiconductor experts and coordinates resources across government ministries, industry, and academia.

The Semicon India program, launched in 2021 with a budget of Rs 76,000 crore, plays a crucial role in boosting domestic semiconductor manufacturing. It includes incentives and strategic partnerships, supporting various sectors such as fabrication facilities, packaging, outsourced semiconductor assembly and testing (OSAT), sensors, and other critical components. The program features four key schemes: Semiconductor Fab Set-up, Display Fab Set-up, Compound Semiconductors/Silicon Photonics/Sensors Fab, and Semiconductor ATMP/OSAT Facilities.

The Morigaon facility is part of a broader government initiative to strengthen India’s semiconductor production. Other significant projects include new semiconductor units by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat, with Kaynes Semicon Pvt Ltd also setting up a unit in Sanand. These efforts reflect India’s push to reduce dependence on semiconductor imports and enhance its position in the global semiconductor supply chain.

In addition to these initiatives, the government is modernizing the Semiconductor Laboratory in Mohali and supporting the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), along with the Production Linked Incentive (PLI) Scheme for Large-Scale Electronics. These programs are designed to support all aspects of semiconductor production, from chip design to fabrication, testing, and assembly.

The Tata semiconductor facility in Morigaon is a key milestone in India's journey toward becoming a global leader in semiconductor manufacturing. This project, along with others under the Semicon India initiative, will strengthen India’s technological infrastructure, create jobs, and help the country meet the rising global demand for semiconductors, securing India’s place in the digital economy of the future.