Assam’s semiconductor plant: A game changer for India’s semiconductor ecosystem
INN/Dispur, @infodeaofficial
The best example of India’s ambitious progress in the semiconductor industry is the development of a semiconductor unit in Morigaon, Assam. It is led by Tata Semiconductor Assembly and Test Private Limited (TSAT). The project is set to become one of the major manufacturing sites in the country. It is involved with the broader goal of establishing the country’s self-reliant semiconductor ecosystem. With an investment of Rs 27,000 crore, Morigaon is expected to produce 480 lakh semiconductor chips per day.
It will use advanced packaging technologies such as flip chip and integrated system in package (ISIP). Designed to meet the needs of essential sectors such as automotive, electric vehicles, telecommunications and consumer electronics, the unit is expected to be completed by mid-2025.
The Morigaon unit goes beyond technological development, it is delivering significant socio-economic benefits by creating 15 thousand direct and 11 thousand to 13 thousand indirect jobs. It is contributing to regional economic development in Assam and surrounding areas. As a high capacity production site, the daily output of the unit will supply both domestic and international markets. This will establish India as a competitive force in the global semiconductor supply chain.
India Semiconductor Mission: Promoting Aatmanirbhar Semiconductor Industry
According to industry estimates, the Indian semiconductor market will be worth approximately $38 billion in 2023 and is projected to grow to $109 billion by 2030. To support this rapid expansion and reduce dependence on imports, the Government of India has implemented several initiatives aimed at promoting domestic semiconductor manufacturing. The India Semiconductor Mission (ISM) aims to build a sustainable semiconductor and display ecosystem that will establish India as a leader in electronics manufacturing and design. Under the guidance of international semiconductor experts, ISM coordinates efforts across government ministries, industry and academic institutions to ensure efficient deployment of resources and support.
Launched in 2021 with a financial outlay of Rs 76,000 crore, the Semicon India program is designed to boost the domestic semiconductor industry through incentives and strategic partnerships. The initiative supports various segments of the semiconductor industry, extending beyond just fabrication facilities (fabs) to include packaging, display wires, outsourced semiconductor assembly and testing (OSAT), sensors and other critical components, thereby creating a comprehensive ecosystem. Four schemes have been launched under the program, Revised Scheme for Setting up Semiconductor Fabs in India, Revised Scheme for Setting up Display Fabs in India, Revised Scheme for Setting up Compound Semiconductor/Silicon Photonics/Sensor Fab/Discrete Semiconductor Fab and Semiconductor ATMP/OSAT Facilities in India and Design Linked Incentive (DLI) Scheme.
The Morigaon Semiconductor facility is part of a wider network of government-backed projects aimed at enhancing India’s semiconductor production capabilities. The Union Cabinet has approved the setting up of several semiconductor units across the country. This includes new facilities of Tata Electronics at Dholera in Gujarat and CG Power at Sanand in Gujarat. Additionally, Kains Semicon Pvt Ltd was also approved to set up a unit at Sanand. This expansion reflects India’s commitment to reduce dependence on semiconductor imports and strengthen its position in the global semiconductor market.
The government has also focused on modernising the semi-conductor laboratory at Mohali and implementing the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (DLI) Scheme for Large Scale Electronics. These efforts ensure support for every segment of semiconductor production. They foster an ecosystem that includes chip design, manufacturing, testing, and assembly.
The establishment of a semiconductor unit in Morigaon, Assam is a significant step towards achieving India’s semiconductor ambitions. This project, along with other projects approved under the Semicon India program, strengthens India’s technological foundation and supports the country’s vision for economic resilience and self-reliance. As the demand for semiconductors continues to grow worldwide, India’s growing semiconductor infrastructure is poised to drive innovation, create jobs, and secure India’s position as an important country in the global digital economy.