Strategic Initiative to Strengthen Self-Reliance in Chip Production
The upcoming semiconductor manufacturing plant in Morigaon, Assam, spearheaded by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), is positioned to become one of India’s foremost production centers. This ₹27,000 crore project aligns with the nation’s goal of building a robust and self-reliant semiconductor ecosystem. The Ministry of Electronics & IT announced that the facility, projected for completion by mid-2025, will employ advanced technologies such as flip chip and Integrated System in Package (ISIP) to produce up to 48 million semiconductor chips daily.
Economic and Market Implications
Beyond technological advancements, the Morigaon plant is anticipated to generate significant socio-economic benefits, creating 15,000 direct and an estimated 11,000-13,000 indirect jobs, thus boosting regional economic development in Assam and neighboring states. This high-capacity facility aims to meet the demands of sectors including automotive, electric vehicles, telecommunications, and consumer electronics, serving both domestic and international markets. Industry analysis forecasts India’s semiconductor market to rise from $38 billion in 2023 to $109 billion by 2030, underscoring the necessity of enhanced local production capabilities.
Government Support and Future Outlook
The development in Assam forms part of the larger Semicon India initiative launched in 2021 with a budget allocation of ₹76,000 crore to stimulate domestic semiconductor production through incentives and strategic partnerships. The initiative includes various schemes targeting the establishment of semiconductor fabs, display units, and advanced testing and packaging facilities. In addition to Morigaon, the government has approved facilities in Gujarat’s Dholera and Sanand, emphasizing a comprehensive push to minimize import dependency and bolster India’s global semiconductor competitiveness. The modernization of the Semi-Conductor Laboratory in Mohali and the adoption of programs like SPECS and the Production Linked Incentive (PLI) Scheme are further steps to ensure a complete ecosystem supporting chip design, fabrication, and assembly, positioning India as a pivotal force in the global semiconductor landscape.
