New Delhi, November 18 (IANS). The development of the Rs 27,000 crore semiconductor unit at Morigaon in Assam, led by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT), is scheduled to be completed in mid-2025. According to the Ministry of Electronics and IT, this will prove to be a big change for India’s semiconductor ecosystem.
The Morigaon plant is expected to produce 48 million semiconductor chips per day. Advanced packaging technologies like Flip Chip and Integrated System in Package (ISIP) will be used in this.
Designed to meet the needs of sectors such as automotive, electric vehicles, telecommunications and consumer electronics, the project is going to become one of the major manufacturing sites in the country. This is important for the country’s goal of establishing a self-reliant semiconductor ecosystem.
The Morigaon unit goes beyond technology development, it brings significant socio-economic benefits by creating 15,000 direct and 11,000-13,000 indirect jobs, contributing to regional economic development in Assam and surrounding areas.
As a high-capacity production site, the daily output will cater to both domestic and international markets, positioning India as a competitive force in the global semiconductor supply chain, the statement said.
According to industry estimates, the Indian semiconductor market is projected to grow from approximately $38 billion in 2023 to $109 billion by 2030. To support this rapid expansion and reduce dependence on imports, the Government of India has implemented several initiatives aimed at promoting domestic semiconductor manufacturing.
India Semiconductor Mission (ISM) aims to build a sustainable semiconductor and display ecosystem that will position India as a leader in electronics manufacturing and design.
Launched in 2021 with a financial outlay of Rs 76,000 crore, the Semicon India program is key to promoting the domestic semiconductor industry through incentives and strategic partnerships.
The initiative supports various segments of the semiconductor industry, going beyond just manufacturing facilities (fabs) to include packaging, display wires, outsourced semiconductor assembly and testing, sensors and other critical components, creating a larger ecosystem.
Under the programme, four schemes namely Revised Scheme for setting up Semiconductor Fabs in India, Revised Scheme for setting up Display Fabs in India, Revised Scheme for setting up Compound Semiconductor/Silicon Photonics/Sensor Fab/Discrete Semiconductor Fabs in India and Revised Scheme for setting up Semiconductor ATMP/OSAT facilities in India. Planning and Design Linked Incentive Schemes have been launched.
The Morigaon semiconductor facility is part of a broader network of government-backed projects aimed at enhancing India’s semiconductor production capabilities.
The Union Cabinet has approved setting up of several semiconductor units across the country, including new facilities at Tata Electronics at Dholera, Gujarat and CG Power at Sanand, Gujarat.
Apart from this, Kaynes Semicon Private Limited was also given approval to set up a unit in Sanand.
This expansion reflects India’s commitment to reduce dependence on semiconductor imports and strengthen its position in the global semiconductor value chain.
The government has also focused on modernizing the semiconductor laboratory in Mohali and implementing the scheme to promote manufacturing of electronic components and semiconductors and the production linked incentive scheme for electronics on a large scale.
These efforts ensure support for every segment of semiconductor production, fostering an ecosystem that includes chip design, manufacturing, testing and assembly.
The statement said that as semiconductor demand increases worldwide, India’s growing semiconductor infrastructure will drive innovation, create new employment opportunities and strengthen the country’s position as a major player in the global digital economy.
–IANS
SKT/AS
