How Assam’s New Semiconductor Facility is Going to Change the Semiconductor Industry?

India’s rapidly advancing semiconductor industry is exemplified by the development of a cutting-edge semiconductor unit in Morigaon, Assam. Spearheaded by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), this facility is poised to become one of the country’s flagship manufacturing sites. With a planned investment of ₹27,000 crore, it aims to produce up to 48 million semiconductor chips daily, employing advanced packaging technologies such as flip chip and Integrated System in Package (ISIP). Slated for completion by mid-2025, the Morigaon facility will cater to critical sectors including automotive, electric vehicles, telecommunications, and consumer electronics, reinforcing India’s push towards a self-sufficient semiconductor ecosystem.

Socio-Economic Impact of the Morigaon Semiconductor Facility

Beyond technological advancements, the Morigaon semiconductor plant will bring substantial socio-economic benefits. The facility is expected to generate 15,000 direct jobs and an additional 11,000 to 13,000 indirect jobs, significantly boosting regional employment in Assam and neighbouring areas. The large-scale production capacity will cater to both domestic and international markets, positioning India as a competitive force in the global semiconductor supply chain and promoting economic growth in the region.

India Semiconductor Mission (ISM): A National Initiative

The India Semiconductor Mission (ISM) plays a pivotal role in India’s strategy to build a self-reliant semiconductor industry. Launched in 2021 with a financial outlay of ₹76,000 crore, the initiative is designed to create a sustainable semiconductor and display ecosystem in India. The mission is supported by a coalition of government ministries, industry players, and academic institutions, aiming to establish India as a global leader in electronics manufacturing and design.

Government Backing and Expansion of Semiconductor Infrastructure

The Morigaon facility is just one part of a broader strategy to strengthen India’s semiconductor infrastructure. The Union Cabinet has approved the establishment of multiple semiconductor units across the country. Notable projects include new facilities by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat, as well as a unit by Kaynes Semicon Pvt Ltd in Sanand. These developments reflect India’s growing commitment to reducing dependence on semiconductor imports and bolstering its position within the global semiconductor value chain.

Supportive Schemes: SPECS and PLI

In addition to the Semicon India program, the Indian government has implemented several schemes to further bolster the semiconductor ecosystem. These include the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (PLI) Scheme for Large-Scale Electronics. These initiatives are designed to modernize existing infrastructure and provide financial support to semiconductor production at every stage, from design to assembly, ensuring the growth of a resilient and competitive domestic semiconductor industry.

India’s Path to Semiconductor Leadership

The development of the Morigaon semiconductor unit and other initiatives under the India Semiconductor Mission mark crucial milestones in India’s quest for semiconductor self-sufficiency. These efforts are designed to not only enhance India’s technological capabilities but also to contribute to its economic resilience and self-reliance. As global demand for semiconductors continues to rise, India’s growing semiconductor infrastructure is positioned to drive innovation, create jobs, and solidify the country’s role as a major player in the global digital economy.

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