Tata's Assam Plant to Produce Millions of Chips Daily Using Local Tech

Tata Group's semiconductor plant in Assam will produce 4.83 crore chips daily using homegrown technologies, Union Minister Ashwini Vaishnaw announced on Saturday. Assam Chief Minister Himanta Biswa Sarma and Tata Sons Limited Chairman N Chandrasekaran performed the Bhumi pujan for the Rs 27,000-crore semiconductor assembly and test facility at Jagiroad in Morigaon district.

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The project received approval from the Union Cabinet, chaired by Prime Minister Narendra Modi, on February 29, 2024. Construction began within five months of approval. The plant will manufacture approximately 4.83 crore chips daily. "The unique thing about this plant is that all the three major technologies which will be deployed in this plant are developed in India," Vaishnaw stated.

Employment Opportunities

At the Bhumi Pujan ceremony, Tata Sons Chairman N Chandrasekaran mentioned that the chip assembly plant in Assam would create 27,000 jobs. This includes 15,000 direct and 12,000 indirect employment opportunities. The plant is expected to become operational in 2025.

Vaishnaw highlighted that the chips produced at the Tata plant will be used in vehicles, including electric vehicles. "Practically every large company will be using their chips," he said. He added that communication and network infrastructure companies, especially those manufacturing 5G routers, will also utilise these chips.

India Semiconductor Mission

The minister further elaborated on the India Semiconductor Mission's goal to develop 85,000 talents for the industry. Nine institutes in the northeast have started working on talent development for the semiconductor 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.

Vaishnaw emphasised that semiconductors are 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," he said. He noted that the ecosystem's complexity ensures multiple units emerge once a primary unit is established.

Additional Projects

Besides the semiconductor chip assembly and testing plant in Assam, Tata Electronics is also setting up India's first wafer fabrication unit in Dholera, Gujarat. This plant will have a capacity to produce 50,000 wafers per month and involve an investment of Rs 91,000 crore. The first chip from Tata's Dholera plant is expected to be out in December 2026.

"Our prime minister has always emphasized on Act East policy and very important milestone in our semiconductor programme has today been achieved in Assam," Vaishnaw said. He noted that construction work on the semiconductor unit has commenced as part of this initiative.

This new semiconductor plant signifies a significant step towards self-reliance in technology for India. The use of indigenous technologies highlights India's growing capabilities in advanced manufacturing sectors.