India's ambitious efforts in the semiconductor industry are exemplified by the establishment of a semiconductor facility in Morigaon, Assam, led by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT). This project, poised to become one of the country’s leading manufacturing hubs, supports India’s broader goal of creating a self-reliant semiconductor ecosystem. With an investment of Rs. 27,000 crore, the Morigaon plant is set to produce up to 48 million semiconductor chips daily, utilizing advanced packaging technologies such as flip chip and Integrated System in Package (ISIP). Designed to serve key sectors like automotive, electric vehicles, telecommunications, and consumer electronics, the facility is scheduled for completion by mid-2025.
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Beyond its technological impact, the Morigaon unit offers significant socio-economic benefits, including the creation of 15,000 direct jobs and 11,000–13,000 indirect jobs, fostering economic growth in Assam and neighboring regions. As a high-capacity production site, its daily output will cater to both domestic and global markets, enhancing India’s position as a competitive player in the global semiconductor supply chain.
India Semiconductor Mission: Paving the Way for a Self-Reliant Chip Industry
Industry estimates value 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 dependency on imports, the Indian government has introduced several initiatives to boost domestic semiconductor manufacturing. The India Semiconductor Mission (ISM) focuses on establishing a sustainable semiconductor and display ecosystem, positioning India as a leader in electronics manufacturing and design. ISM, guided by global semiconductor experts, aligns efforts across government ministries, industry, and academia to optimize resource allocation and provide support.
Launched in 2021 with a budget of ₹76,000 crore, the Semicon India program is designed to nurture the domestic semiconductor sector through incentives and strategic partnerships. This program extends its support to various segments of the semiconductor industry, including fabrication facilities (fabs), packaging, display wires, Outsourced Semiconductor Assembly and Testing (OSATs), sensors, and other critical components. Four schemes have been introduced under the program: 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 Semiconductors Fab and Semiconductor ATMP/OSAT facilities, and the Design Linked Incentive (DLI) Scheme.
The Morigaon semiconductor facility is part of a broader network of government-supported projects aimed at strengthening India’s semiconductor production capabilities. The Union Cabinet has approved the establishment of several semiconductor units nationwide, including new facilities by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat. Additionally, Kaynes Semicon Pvt Ltd has been approved to set up a unit in Sanand. This expansion underscores India’s commitment to reducing semiconductor imports and enhancing its role in the global semiconductor value chain.
The government has also prioritized modernizing the Semi-Conductor Laboratory in Mohali and implementing the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (PLI) Scheme for Large-Scale Electronics. These initiatives ensure comprehensive support for all stages of semiconductor production, including chip design, fabrication, testing, and assembly.
The establishment of the semiconductor unit in Morigaon, Assam, marks a significant milestone in India’s semiconductor journey. This project, along with others approved under the Semicon India program, bolsters India’s technological base and aligns with the nation’s vision of economic resilience and self-reliance. As global demand for semiconductors continues to rise, India’s expanding semiconductor infrastructure is poised to drive innovation, generate employment, and secure its position as a key player in the global digital economy.
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