In a significant development, the semiconductor plant in Morigaon, Assam, led by Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) with an investment of Rs 27,000 crore is set to be completed in mid-2025. According to the Ministry of Electronics &IT, this project is expected to be a game-changer for the country’s semiconductor ecosystem. It aligns with the nation’s broader goal of establishing a self-sufficient semiconductor ecosystem.
Expected Production and Technological Innovation of the Semiconductor Plant
The Morigaon semiconductor plant is expected to produce up to 48 million semiconductor chips daily, employing cutting-edge packaging technologies like flip chip and Integrated System in Packag (ISIP). This semiconductor plant will serve key industries such as automotive, electric vehicles, telecommunications, and consumer electronics, the project is set to become one of the pioneering manufacturing hubs.
Socio-Economic Impact
In addition to technological progress, the Morigaon semiconductor plant will generate significant socio-economic benefits. It is anticipated to create 15,000 direct jobs and between 11,000 to 13,000 indirect jobs, fostering economic growth in Assam and surrounding regions.
Global Competitive Position
As a high-capacity production facility, the Morigaon semiconductor plant will cater to both domestic and global markets. This will help position India as a competitive player in the international semiconductor supply chain, strengthening its global standing in electronics production.
Indian Semiconductor Market Growth
The Indian semiconductor market was valued at approximately $38 billion in 2023, with projections estimating it could grow to $109 billion by 2030. To support this expansion and decrease dependency on imports, the Indian government has launched various initiatives aimed at boosting local semiconductor manufacturing.
India Semiconductor Mission (ISM)
The India Semiconductor Mission (ISM) seeks to establish a self-reliant semiconductor and display ecosystem, positioning India as a global leader in electronics manufacturing and design. The mission brings together government bodies, industry leaders, and academic institutions to ensure effective coordination and resource allocation.
Semicon India Program
Launched in 2021 with an investment of ₹76,000 crore, the Semicon India program aims to strengthen India’s semiconductor sector through incentives and strategic collaborations. It supports multiple aspects of the industry, including semiconductor fabrication facilities, packaging, display technologies, Outsourced Semiconductor Assembly and Testing (OSAT), sensors, and other essential components, helping to create a comprehensive industry ecosystem.
Key schemes under the programme
According to a report by Sentinel, a total of four schemes have been included under the programme, 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 larger network of government-backed projects aimed at strengthening India’s semiconductor production capacities.
Expansion of Semiconductor Units Across India
The Union Cabinet has approved the development of multiple semiconductor plants across India, including new plants by Tata Electronics in Dholera, Gujarat, and CG Power in Sanand, Gujarat. Kaynes Semicon Pvt Ltd has also received approval to set up a plant in Sanand. This expansion signifies India’s commitment to reducing reliance on semiconductor imports and reinforcing its position in the global semiconductor value chain.
Government Support for the Semiconductor Ecosystem
The government is also modernizing the Semi-Conductor Laboratory in Mohali and implementing the initiatives for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Production Linked Incentive (PLI) Scheme for Large-Scale Electronics. These efforts aim to support very segment of semiconductor production, fostering an ecosystem that includes chip design, fabrication, testing, and assembly. This facilities are expected to help in building a fully equipped semiconductor ecosystem in India.
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