Jagiroad, Assam – Union Finance Minister Nirmala Sitharaman has lauded Assam's new semiconductor facility as a "turning point" for the Northeast region of India, emphasizing its potential to drive economic growth, create employment, and foster a thriving ecosystem of innovation and entrepreneurship. Sitharaman made these remarks during her two-day visit to Assam, where she reviewed the progress of Tata Electronics' upcoming Outsourced Semiconductor Assembly and Test (OSAT) facility at Jagiroad in Morigaon district.
The ₹27,000 crore (approximately $3.6 billion) project is poised to be a landmark industrial development for the North Eastern Region, aligning with the government's vision of a "Viksit Bharat" (Developed India) by 2047. The facility is expected to generate over 27,000 direct and indirect jobs, significantly boosting the region's economic landscape.
During her visit, Sitharaman interacted with officials overseeing the project and expressed her appreciation for the collaborative efforts of Chief Minister Himanta Biswa Sarma and the Tata Group in establishing the state's first semiconductor manufacturing unit. She noted that Assam has taken the lead in creating an environment that encourages investment and industrial growth.
The Finance Minister highlighted the importance of inclusive industrial development, emphasizing that the semiconductor unit is not just an opportunity for Assam but for the entire Northeast. She stated that it sends a strong message that the region is capable of achieving significant industrial advancements.
The Morigaon facility is designed to produce up to 48 million chips per day using advanced packaging technologies such as flip chip and Integrated System in Package (ISIP). These technologies are crucial for manufacturing high-performance components used in various sectors, including automotive, electric vehicles, telecommunications, and consumer electronics. The plant is expected to become operational by mid-2025 and will play a central role in strengthening India's semiconductor supply chain to meet the growing global demand for chips.
Sitharaman's office noted that since 2014, Prime Minister Narendra Modi has emphasized the holistic development of the North-East region, recognizing its critical role in achieving the vision of a Viksit Bharat by 2047. The semiconductor project aligns with this vision by bringing high-value investment and skilled employment opportunities to Assam.
In addition to the Assam facility, Tata Electronics is also setting up India's first wafer fabrication unit in Dholera, Gujarat, with a projected investment of ₹91,000 crore. The first chip from the Dholera plant is expected to be out in December 2026.
The establishment of the semiconductor facility in Assam is a significant step towards creating an end-to-end semiconductor manufacturing ecosystem in India. The project is envisioned under the Government of India's Semiconductor policy, driven by the India Semiconductor Mission and the Government of Assam's Electronics policy.
Sitharaman concluded her address by encouraging Assam's youth to embrace entrepreneurship and contribute to India's growth. She urged them to move beyond traditional employment and create their own enterprises, emphasizing that the semiconductor unit will be the engine of Viksit Bharat for the Northeast, building an ecosystem that promotes local innovation and self-reliance.
