"Tata Group Launches ₹27,000 Crore Semiconductor Facility in Assam, Set to Produce 15 Billion Chips Annually"

The Tata Group has unveiled plans for a ₹27,000-crore greenfield semiconductor assembly and test facility in Assam, set to commence operations next year. The new facility, located in Jagiroad, is expected to package approximately 15 billion chips annually for global customers.

The groundbreaking ceremony for India's first indigenous semiconductor assembly and testing plant was held on Saturday. The chips produced at this state-of-the-art facility will power a wide range of products, including electric vehicles, healthcare devices, mobile phones, and laptops, serving leading global companies.

Tata Sons Chairman N. Chandrasekaran highlighted the Tata Group’s comprehensive approach to the electronics ecosystem, noting the group’s expanding capabilities across India. “We began with robust manufacturing in Tamil Nadu, followed by packaging in Karnataka. Now, we’re establishing an advanced chip manufacturing facility in Gujarat and this cutting-edge assembly and test facility in Assam,” he said.

Prime Minister Narendra Modi had previously laid the foundation for the Gujarat and Assam facilities through a virtual event in March. Assam’s strategic location is advantageous, being closer to key semiconductor packaging hubs in Taiwan, Malaysia, Vietnam, and Singapore.

Chandrasekaran expressed pride in Tata Group’s role in advancing India’s semiconductor industry under Modi’s leadership. “This investment represents a significant step forward for India and the Tata Group, and is crucial for building a knowledge base for the future,” he said.

The Assam facility, managed by Tata Electronics—a wholly-owned subsidiary of Tata Sons—will join the company’s existing operations in Tamil Nadu and Karnataka. Chandrasekaran anticipated that part of the Assam facility would be operational by 2025, accelerating the development and operational timeline.

Tata Electronics CEO & MD Randhir Thakur emphasized the scale of the investment and its global impact. “We are investing ₹27,000 crore in this facility, which will package 15 billion chips annually,” Thakur said.

The assembly and testing process is critical in the semiconductor value chain, involving the packaging and testing of wafers produced by semiconductor fabs before they are integrated into end products.

Chandrasekaran described the project as a historic development, noting that the facility will offer advanced packaging and assembly capabilities. He also envisions Assam becoming a major electronics hub, attracting additional semiconductor ecosystem companies and fostering a thriving industry in the state.

Assam Chief Minister Himanta Biswa Sarma assured the Tata Group of full support from the state government. “The people of Assam are committed to supporting this endeavor. We are grateful for Tata Group’s contributions and view this project as a unique opportunity and gift for our state,” Sarma said.

HBL