At the Tata Group’s ₹27,000-crore greenfield semiconductor assembly and test facility in Assam, which is expected to be operationalised by next year, around 15 billion chips will be packaged annually for customers globally.

For India’s first indigenous facility for assembly and testing of semiconductor chips, the Bhoomi Pujan ceremony was performed on Saturday.

The chips, which will be packaged at the Jagiroad facility in Assam, will power electric vehicles, healthcare devices, mobile phones, laptops, and other key products of leading global companies around the world.

Speaking on the occasion, Tata Sons Chairman N Chandrasekaran said the Tata Group has taken a very holistic view and has a unique positioning in the entire value chain of the electronics ecosystem.

Assam Chief Minister Himanta Biswa Sarma and Chairman of Tata Sons Limited N Chandrasekaran offer prayers during the ‘Bhumi pujan’ for the ₹27,000 crore semiconductor assembly and test facility at Jagiroad, in Morigaon district, Saturday, Aug. 3, 2024.  
| Photo Credit: PTI

“We started by setting up a very strong manufacturing capability in Tamil Nadu, and then followed it up with a strong packaging capability in Karnataka. Then we are setting up an advanced chip manufacturing facility in Gujarat’s Dholera, and an advanced assembly and test facility in Assam,” Chandrasekaran said.

Notably, Prime Minister Narendra Modi in March this year laid the foundation stone through a virtual interaction for the two facilities at Gujarat and Assam. Assam is closer to the current semiconductor packaging and test hubs in Taiwan, Malaysia, Vietnam, and Singapore.

“India, under the vision and leadership of Prime Minister Narendra Modiji, took a massive lead to enter in this (semiconductor) field, and the Tata Group is very proud and pleased to spearhead this movement. We are fundamentally of the belief that this is the future and this is important for India. And it is important for our people in terms of the knowledge-base that we want to create for the future,” the Tata Sons Chairman pointed out.

Assam facility

Tata Electronics, a wholly-owned subsidiary of Tata Sons, is building the Assam facility. Founded in 2020 as a greenfield venture of the Tata Group, the company currently has facilities in Tamil Nadu and Karnataka.

“Considering that we want to move fast, we are trying to accelerate the building of this factory (in Assam), and we hope some time in 2025 we will be able to complete part of the facility and quickly start our operations,” Chandrasekaran informed.

Speaking at the event, Tata Electronics CEO & MD Randhir Thakur said the company is investing ₹27,000 crore in this facility, where 15 billion chips will be packaged annually for customers all over the globe.

Semiconductor assembly and testing are critical parts of the semiconductor value chain. In this process, wafers manufactured by semiconductor fabs are assembled or packaged and then tested before they are finally used in the desired product.

Terming it “as a historic day,” Chandrasekaran said the new facility will be “very advanced” as multiple different types of packaging and assembly will take place here. “And, with this, we will be adding an additional new capability to design chips for any industry and for global players,” he said.

He said Assam will  be the second state to join  the “whole semiconductor movement” that has just started.

According to him, once this new facility expands, it will bring the entire semiconductor ecosystem companies in the state, which will become a “thriving electronics hub,”

“You will need several people who will produce different components and as we grow while these people will initially start to supply, they will set up their own units here. And I see a big corridor and ecosystem of many, many companies developing here which we will get to see in the coming years,” the Tata Sons Chairman emphasised.

This assembly and test facility will be able to directly ship semiconductor chips to end-users and OEMs (Original Equipment Manufacturers) in India and the world.

Assam Chief Minister Himanta Biswa Sarma said he wanted to assure Chandrasekaran that the Tata Group will not face any difficulties in setting up this facility. “The entire people of Assam are with us to support you in this endeavour. The people of Assam always remain grateful for whatever Tata Group has done so far for us. But this is a unique opportunity and a unique gift,” Sarma said.

Job creation

The facility is expected to generate over 27,000 direct and indirect jobs in the region.

“To get ourselves ready, already we are hiring local Assamese people. Already we have 1,000 people who are employed from Assam on our undergoing training work in different facilities in Bengaluru and other places in India,” Chandrasekaran said.

The project is envisioned under the Government of India’s Semiconductor policy, which is driven by the India Semiconductor Mission and the Government of Assam’s Electronics policy.