Indian semiconductor industry is all set for a new showdown as the much-talked-about assembly and testing facility of Tata is all set to be established in Morigaon, Assam.
Led by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of Rs 27,000 crore, the ministry said, this cutting-edge facility would be fully operational by mid-2025.
India’s Semiconductor Ambitions To Get a Boost In Assam:
This strategic development is going to change the game for the country, aligning with the vision of the country to come forward in the global arena for electronics manufacturing.
As many as 48 million semiconductor chips per day when it’s ready, the Morigaon facility will be producing the same using advanced packaging technologies like flip chip and Integrated System in Package (ISIP).
The chips produced here will serve important sectors like automotive, electric vehicles, telecommunications, and consumer electronics. Coloured as one of the leaders in the country’s manufacturing hubs, this project stands abreast with India’s vision of having a self-reliant ecosystem, thereby reducing imports considerably.
Socio-Economic Impact and Employment Generation
Beyond technological benefits, it is expected to bring significant socio-economic dividends for Morigaon. The proposed unit would generate around 15,000 direct employment opportunities along with another 11,000 to 13,000 indirect employment opportunities to significantly boost the regional economy of Assam and other neighboring regions.
The influx of employment opportunities is likely to ensure an improvement in the socio-economic make-up of the region, providing an alternative for skilled and semi-skilled labor across the region.
As the ministry pointed out, “The facility in Assam will not only strengthen our semiconductor capabilities but also uplift the local community by generating thousands of jobs.”
Catalysing India’s Market
India is pushing towards a self-sustaining industry through a strategic investment in Assam. The high production capacity of the facility will cater not only to the domestic market but will also respond to international demand, thus making India a relevant competitive force in the supply chain globally.
This facility is going to emerge as an important potential contributor to satisfy both the national and international demands, when the drive by the demand for semiconductors in the global market continues to rise.
The market of the product in India is estimated to be around $38 billion as of 2023, and going by the growth projections, it should shoot up exponentially to $109 billion by 2030. With this rapid growth momentum, the government of India has launched several initiatives that would support domestic manufacturing, bring down import dependency, and ensure more supply chain resilience.
Strategic Push
The Morigaon unit is an important addition under the umbrella of ISM, which was rolled out to create a strong and display ecosystem.
With a financial outlay of Rs 76,000 crore under the Semicon India program, the ISM aims at helping India emerge as a global leader in electronics manufacturing and design. The mission is guided by international experts and collaborates with various government ministries, industry stakeholders, and academic institutions to efficiently deploy resources and support.
The Semicon India program expands its facilitations to other sectors besides chip fabrication (fabs) including packaging, display wires, OSATs, sensors, among other components- thereby fostering a wholesome semiconductor ecosystem.
Under the program four schemes have been introduced that comprise of the Modified Scheme for setting up Fabs, Display Fabs, Compound, and the Design Linked Incentive (DLI) Scheme, among others.
Nationwide Capabilities Expansion
The Morigaon facility is one of the governmental-backed projects. Apart from the Assam unit, the Union Cabinet has sanctioned the development of several semiconductor facilities spread across the country.
Among these are the new semiconductor projects undertaken by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat. Kaynes Semicon Pvt Ltd is also set to establish a unit in Sanand, reflecting the government’s commitment to expanding the nation’s semiconductor manufacturing capabilities.
Efforts are also being made to upgrade the Laboratory at Mohali. Complementing these efforts are schemes such as the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, SPECS, and the Production Linked Incentive Scheme for Large-Scale Electronics. Summed up, all these schemes provide support to each leg of the value chain – from chip design and fabrication to testing and assembly.
Fostering India’s Position in the Global Digital Economy
The developing infrastructure would spur innovation, create jobs, and support the country in maintaining and consolidating its position in the global digital economy. Investing in India’s domestic semiconductor manufacturing is a move to decrease imports and ensure its position in the world semiconductor value chain.
The Morigaon unit is not just a technological development but also a catalyst for socio-economic growth, job creation and India’s aspiration to become a global hub, the ministry statement underlined.
With global demand for semiconductors mushrooming, timely completion of this project by mid-2025 will fulfill India’s domestic requirement and help the country achieve competitiveness on the global front. Strategic partnerships, incentives, and infrastructure development will help India establish a niche as a leader in the world with meaningful contributions to the global digital ecosystem.
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