India’s push to establish a self-sufficient semiconductor industry has taken a major step forward with the development of a semiconductor manufacturing facility in Morigaon, Assam, spearheaded by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT). With an investment of Rs. 27,000 crore, the Morigaon facility is set to become one of the country’s premier manufacturing sites, producing up to 48 million semiconductor chips per day using advanced packaging technologies like flip chip and Integrated System in Package (ISIP). The facility is designed to cater to essential sectors including automotive, electric vehicles, telecommunications, and consumer electronics, and is projected to be completed by mid-2025.
Beyond technological development, the Morigaon unit will bring significant socio-economic benefits, generating 15,000 direct and 11,000-13,000 indirect jobs, contributing to regional economic growth in Assam and neighboring areas. As a high-capacity production site, its daily output will serve both domestic and international markets, positioning India as a competitive force in the global semiconductor supply chain.
The India Semiconductor Mission (ISM) is central to supporting this growth. Launched in 2021 with a financial outlay of ₹76,000 crore, the Semicon India program aims to promote domestic semiconductor manufacturing through incentives and strategic partnerships. This initiative extends beyond just fabrication facilities (fabs) to include packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components, creating a comprehensive semiconductor ecosystem.
Under the program, four key schemes have been introduced: the Modified Scheme for setting up Semiconductor Fabs in India, the Modified Scheme for setting up Display Fabs in India, the Modified Scheme for setting up Compound Semiconductors/Silicon Photonics/Sensors Fab/Discrete Semiconductors Fab, and the Semiconductor ATMP/OSAT facilities scheme.
The Morigaon facility is part of a wider network of government-backed projects aimed at boosting India’s semiconductor production capabilities. The Union Cabinet has approved the establishment of multiple semiconductor units across the country, including new facilities by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat. Additionally, Kaynes Semicon Pvt Ltd was approved to set up a unit in Sanand. This expansion reflects India’s commitment to reducing reliance on semiconductor imports and strengthening its position in the global semiconductor value chain.
The government has also focused on modernizing the Semi-Conductor Laboratory in Mohali and implementing 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 ensure support for every segment of semiconductor production, fostering an ecosystem that encompasses chip design, fabrication, testing, and assembly.
The Morigaon semiconductor facility marks a pivotal milestone toward achieving India’s semiconductor ambitions. Alongside other approved projects under the Semicon India program, this facility strengthens the country’s technological foundation and supports its vision for economic resilience and self-reliance. As global demand for semiconductors continues to grow, India’s burgeoning semiconductor infrastructure is poised to drive innovation, create jobs, and solidify the nation’s role as a significant player in the global digital economy.(PR)