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NEW DELHI — The development of a semiconductor unit in Morigaon, Assam, spearheaded by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of INR 27,000 crore is headed for completion in mid-2025, will be a game-changer for India’s semiconductor ecosystem, the Ministry of Electronics & IT said on Sunday.
The Morigaon facility is expected to produce up to 48 million semiconductor chips per day, employing advanced packaging technologies like flip chip and Integrated System in Package (ISIP).
Designed to cater to essential sectors such as automotive, electric vehicles, telecommunications, and consumer electronics, the project is set to become one of the country’s premier manufacturing sites. It aligns with the nation’s broader goal of establishing a self-sufficient semiconductor ecosystem.
The Morigaon unit goes beyond technological development, it brings significant socio-economic benefits by generating 15,000 direct and 11,000-13,000 indirect jobs, contributing to regional economic growth in Assam and nearby areas.
As a high-capacity production site, the facility’s daily output will serve both domestic and international markets, positioning India as a competitive force in the global semiconductor supply chain, the statement said.
Industry estimates place the Indian semiconductor market at approximately $38 billion in 2023, with projections indicating growth to $109 billion by 2030. To support this rapid expansion and reduce reliance on imports, the Indian government has implemented several initiatives aimed at promoting domestic semiconductor manufacturing.
The 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.
Guided by international semiconductor experts, ISM coordinates efforts across government ministries, industry, and academic institutions to ensure efficient deployment of resources and support.
Launched in 2021 with a financial outlay of INR 76,000 crore, the Semicon India program is structured to promote the domestic semiconductor industry through incentives and strategic partnerships. This initiative supports various sectors of the semiconductor industry, extending beyond just fabrication facilities (fabs) to include packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components, creating a comprehensive ecosystem. Under the program, four schemes have been introduced namely 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