Tata Group plans to construct India’s first Indigenous Semiconductor Assembly and Test Facility in Assam

On Thursday, the Cabinet gave the green light for Tata Group’s semiconductor chip fabrication unit in Gujarat, with an investment of approximately Rs 50,000 crore, as announced by Union Minister Ashwini Vaishnaw.

In a significant move towards establishing a complete semiconductor manufacturing setup in India, the Government of India has given its nod to Tata Electronics’ proposal to construct a cutting-edge semiconductor assembly and test facility in Jagiroad, Assam. This facility, with an investment of INR 27,000 crore, is projected to create more than 27,000 direct and indirect job opportunities in the region.

Tata Electronics Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd, will spearhead the construction of this facility, focusing on three main platform technologies: Wire Bond, Flip Chip, and a specialized offering called Integrated Systems Packaging (ISP). The company also intends to broaden its scope to encompass advanced packaging technologies in the future. These technologies play a crucial role in various vital applications in India, including automotive (particularly electric vehicles), communications, and network infrastructure.

Tata Electronics has already invested significantly in developing indigenous technology for these platforms and has assembled a highly experienced team with over 1,000 years of global expertise to lead this project. The proposed facility aims to meet the rising global demand across key market sectors such as AI, industrial, and consumer electronics.

Construction of the facility is slated to commence this year, with the first phase expected to be operational by mid-2025, providing a substantial boost to industrialization in Northeast India. The project aligns with the Government of India’s Semiconductor policy, spearheaded by the India Semiconductor Mission, and the Government of Assam’s Electronics policy.

Semiconductor assembly and testing are integral parts of the semiconductor value chain, where wafers produced by semiconductor fabs are assembled, packaged, and tested before being utilized in final products. Innovations in semiconductor assembly and testing drive improved performance, smaller form factors, and reduced costs of semiconductor chips.

In response to the announcement, N Chandrasekaran, Chairman of Tata Sons, stated, “We are witnessing a pivotal moment in the global electronics manufacturing landscape, with a growing demand for a more secure and resilient electronics supply chain. By introducing our semiconductor fab and embarking on this strategic project in semiconductor assembly and testing, we aim to facilitate our global clients in establishing a significant part of their semiconductor value chain in India. Beyond addressing global supply chain vulnerabilities, I believe this initiative will bring about a transformative change towards technology-driven industrial growth and employment generation, particularly in the Northeast region.

Dr. Randhir Thakur, CEO & MD of Tata Electronics, expressed, “Our unique strategy of serving the entire semiconductor value chain sets us apart and allows us to provide comprehensive solutions to our customers. We recognize a significant opportunity, with strong demand from global players for manufacturing in India, and we aim to seize this opportunity by driving technological innovation. This investment will play a crucial role in positioning India as a key player in global semiconductor manufacturing and in fostering a complete domestic ecosystem for high-tech manufacturing, while also facilitating the growth of indigenous product development.

Thanks to the decisive leadership of Honorable Prime Minister Shri Narendra Modi, the Government of India has formulated comprehensive national and state semiconductor policies. This, coupled with the support from the Ministry of Electronics and Information Technology, India Semiconductor Mission, and the Government of Assam, has made this announcement a reality.”

Contextual information about Tata Electronics

Tata Electronics, established in 2020 as a new venture of the Tata Group, operates globally in electronics manufacturing. The company specializes in Electronics Manufacturing Services, Semiconductor Assembly & Test, Semiconductor Foundry, and Design Services.

With the goal of enhancing services for global clients, Tata Electronics focuses on providing integrated solutions across the electronics and semiconductor value chain. Currently, the company employs over 15,000 individuals and operates facilities in Tamil Nadu and Karnataka, India. Additionally, Tata Electronics is committed to promoting social and economic welfare by employing a significant number of women and supporting local communities with healthcare, hygiene, and education initiatives.

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