Tata's Rs 27k-cr Semiconductor Plant in Assam Set for 2025 Launch, to Offer 27,000 Jobs

Tata Electronics has commenced the construction of a Rs 27,000-crore chip assembly plant in Assam. This facility, located in Jagiroad, Morigaon district, is expected to be operational by next year and will initially create 27,000 jobs. The foundation stone laying ceremony was attended by Assam Chief Minister Himanta Biswa Sarma and Tata Sons Chairman N Chandrasekaran.

Representative image

Significant Job Creation

Chandrasekaran highlighted that the plant will employ 1,000 people from Assam initially. As the facility expands, it will generate 15,000 direct jobs and an additional 12,000 indirect jobs. "We want to move fast. We are trying to accelerate the building of this factory. We hope sometime in 2025 we will be able to complete this facility and quickly start operations," he said.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the project on February 29, 2024. Union Electronics and IT Minister Ashwini Vaishnaw noted that the construction began within five months of approval. The plant will produce approximately 4.83 crore chips daily using technologies developed in India.

Technological Advancements

Vaishnaw mentioned that the chips produced at this facility would be used in various applications, including vehicles and electric vehicles. He added that companies manufacturing 5G equipment and routers would also utilise these chips. "Semiconductor is a foundational industry. Whenever a semiconductor unit comes there will be many more downstream employment which will get created and there will be many more upstream," Vaishnaw stated.

The minister also emphasised the importance of talent development for the semiconductor industry. Nine institutes in the northeast are working on developing talent for this sector. These include NIT Silchar in Assam, NIT Mizoram, NIT Manipur, NIT Nagaland, NIT Tripura, NIT Agartala, NIT Sikkim, NIT Arunachal Pradesh, and two institutes in Meghalaya—North Eastern Hill University and NIT.

Government Support

Chief Minister Sarma expressed his gratitude towards Tata Sons for setting up the facility in Assam. He assured Chandrasekaran that the company would face no difficulties during the setup process. Sarma said this project would lead to industrial development and employment opportunities for the youth in Assam.

Sarma credited Prime Minister Modi, Union Finance Minister Nirmala Sitharaman, and Union Minister Vaishnaw for making this project possible. "They had assured us that if the Tatas are prepared to move one step, the Centre will move two steps to ensure the setting up of the facility in Assam," he said.

Future Prospects

Besides the semiconductor chip assembly plant in Assam, Tata Electronics is also establishing India's first wafer fabrication unit in Dholera, Gujarat. This plant will have a capacity of producing 50,000 wafers per month with an investment of Rs 91,000 crore. The first chip from Tata's Dholera plant is expected to be ready by December 2026.

The commencement of this project marks a significant milestone under India's Act East policy. Vaishnaw remarked that it was a golden day for Assam as Bhumi Pujan was performed for this crucial project.

The new semiconductor unit is expected to boost both upstream and downstream employment due to its complex ecosystem. This initiative aligns with India's broader goal of becoming self-reliant in semiconductor manufacturing.

The establishment of these facilities underscores Tata Electronics' commitment to advancing India's semiconductor capabilities while creating substantial employment opportunities across regions.