Tata Electronics Assam chip facility to be operational in 2025

Tata’s Rs 27,000 crore semiconductor plant in Assam, set to produce 4.83 crore chips daily using local technologies, will be India’s first homegrown semiconductor assembly and test center. The plant is expected to become operational next year and create 27,000 jobs initially.

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Tata Electronics has commenced the construction of a Rs27,000-crore chip assembly plant in Assam, a project expected to start operations next year and generate around 27,000 jobs. Located at Jagiroad in Morigaon district, the plant will produce 4.83 crore chips daily using domestically-developed technology. The foundation stone laying ceremony, known as Bhumi Pujan, was attended by Assam Chief Minister Himanta Biswa Sarma and Tata Sons Chairman N Chandrasekaran.

On the occasion, the Chief Minister unveiled a 3-D model of the semiconductor assembly and test facility.

The company will build the facility focusing on three key platform technologies- wire bond, flip chip, and a differentiated offering called integrated systems packaging (ISP), with plans to expand the roadmap to advanced packaging technologies in the future. (Semiconductor assembly and testing is a critical part of the value chain where wafers manufactured by semiconductor fabs are assembled or packaged and then tested before they are finally used in the desired product.)

Chandrasekaran announced that 1,000 employees from Assam have already been hired, with plans to integrate the entire semiconductor ecosystem into the project as it grows. 

The initiative received Union Cabinet approval on February 29, 2024, under Prime Minister Narendra Modi. 

Union Electronics and IT Minister Ashwini Vaishnaw highlighted the rapid progress, noting that the plant’s construction began within five months of approval. The Minister further stated that the chips produced at the plant will be utilized in various applications, including vehicles and communication infrastructure such as 5G networks. He also pointed out that a significant part of India’s Semiconductor Mission is to develop a skilled workforce, with nine northeastern institutes, including NIT Silchar and others, actively training talent for the semiconductor industry.

Assam Chief Minister Sarma called the day a ‘golden day’ for the state, expressing gratitude to Prime Minister Modi, Union Finance Minister Nirmala Sitharaman, and Union Minister Vaishnaw for their roles in making the project possible. He assured that Tata Electronics would face no difficulties setting up the facility and affirmed the state’s support.

In addition to the Assam plant, Tata Electronics is also establishing India’s first wafer fabrication unit in Dholera, Gujarat, with an investment of Rs91,000 crore. This plant, slated to produce 50,000 wafers per month, is expected to begin operations in December 2026.