Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is establishing a semiconductor manufacturing facility in Morigaon, Assam, with an investment of ₹27,000 crore. The plant is designed to produce up to 48 million semiconductor chips daily, utilizing advanced packaging technologies, including flip chip and Integrated System in Package (ISIP). The facility, expected to be operational by mid-2025, will serve sectors such as automotive, telecommunications, electric vehicles, and consumer electronics.
The project is projected to create approximately 15,000 direct jobs and an additional 11,000–13,000 indirect jobs, contributing to regional economic development in Assam. The facility’s production capacity will cater to both domestic and international markets.
India’s Semiconductor Initiatives
The Morigaon unit is part of India’s broader strategy to enhance domestic semiconductor manufacturing under the India Semiconductor Mission (ISM). Launched in 2021 with a financial outlay of ₹76,000 crore, the program includes initiatives to support fabrication facilities, packaging, testing, and chip design.
The Indian semiconductor market, estimated at $38 billion in 2023, is projected to grow to $109 billion by 2030. The ISM, along with the Semicon India program, aims to reduce reliance on imports and establish a self-sufficient semiconductor ecosystem.
Additional projects under the government’s initiatives include facilities by Tata Electronics and CG Power in Gujarat and Kaynes Semicon Pvt Ltd in Sanand, Gujarat. These ventures are expected to bolster India’s presence in the global semiconductor supply chain.
The government is also upgrading the Semi-Conductor Laboratory in Mohali and implementing schemes like the Production Linked Incentive (PLI) Scheme for large-scale electronics and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
Strategic Importance
The Morigaon facility underscores India’s efforts to expand its semiconductor capabilities amid rising global demand for chips. The facility’s production and associated infrastructure aim to position India as a competitive player in the semiconductor sector while contributing to the country’s economic growth.