New Delhi, Nov 17 (IANS) The development of a semiconductor unit in Morigaon, Assam, spearheaded
by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of Rs 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 Rs 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
Semiconductors Fab and Semiconductor ATMP/ OSAT facilities in India, and Design Linked Incentive (DLI)
Scheme.
The Morigaon semiconductor facility is part of a wider network of government-backed projects aimed at
bolstering India’s semiconductor production capabilities.
The Union Cabinet has approved the establishment of multiple semiconductor units across the nation,
including new facilities by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat.
Additionally, Kaynes Semicon Pvt Ltd was approved to set up a unit in Sanand as well. This expansion
signifies India’s commitment to reducing reliance on semiconductor imports and fortifying its position in
the global semiconductor value chain.
The government has also focused on 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 efforts ensure support for every segment of semiconductor production, fostering an ecosystem
that encompasses chip design, fabrication, testing, and assembly.
As the demand for semiconductors surges worldwide, India’s burgeoning semiconductor infrastructure
is set to drive innovation, create jobs, and secure the country’s position as a significant player in the
global digital economy, the statement added.