Tata Electronics' proposal to construct a cutting-edge, greenfield semiconductor assembly and test facility in Jagiroad, Assam, has been accepted by the Indian government, marking a key step towards the establishment of an end-to-end semiconductor manufacturing ecosystem in the country. With a construction budget of INR 27,000 crore, the facility is anticipated to provide around 27,000 direct and indirect jobs in the area.

The facility will be constructed by Tata Electronics Pvt Ltd, a fully owned subsidiary of Tata Sons Pvt Ltd, with an emphasis on three core platform technologies: wire bond, flip chip, and integrated systems packaging (ISP), a unique offering. Future plans call for extending the roadmap to include advanced packaging technologies. For important applications in India, including as communications, network infrastructure, automotive (particularly electric vehicles), and others, these technologies are absolutely essential. For each of these platforms, Tata Electronics has already made large investments in domestic technology development, and to spearhead this effort, the company has assembled a highly reputable team with more than a millennium of combined expertise in many worldwide domains. The planned facility will meet the rising demand in major worldwide markets, including consumer electronics, industrial products, and artificial intelligence.

This year marks the beginning of the plant's development, with the first phase expected to be operational by mid-2025. The project is expected to significantly accelerate North-East India's industrialization. The project is envisioned under the Government of Assam's Electronics strategy and the Government of India's Semiconductor policy, which is spearheaded by the India Semiconductor Mission.

A crucial step in the semiconductor value chain is semiconductor assembly and testing, where wafers produced by semiconductor fabs are put together or packed, tested, and then employed in the intended product. Improvements in semiconductor testing and assembly are resulting in lower form factor, higher performance, and cheaper semiconductor chips.

"We are in a unique time for the electronics manufacturing market globally, and the world is seeking a more secure and resilient electronics supply chain," said N Chandrasekaran, Chairman of Tata Sons, in response to the announcement. We will make it possible for our international clients to establish a significant portion of their semiconductor value chain in India with the announcement of the semiconductor fab and this major project in semiconductor assembly and testing. In addition to reducing the risks associated with the global supply chain, I am optimistic that this initiative will significantly advance technology-led industrialization and the creation of jobs, particularly in the Northeast.

The Government of India, under the resolute guidance of Hon'ble Prime Minister Shri Narendra Modi, has formulated an all-encompassing central and state semiconductor policy. This announcement has been made possible by the Ministry of Electronics and Information Technology, the India Semiconductor Mission, and the Government of Assam.

"Our differentiator is our approach of serving across the semiconductor value chain, which will enable Tata Electronics to deliver complete system offerings to customers," stated Dr. Randhir Thakur, CEO and MD of Tata Electronics. We see a huge customer pull from international businesses for manufacturing in India at this crucial window of opportunity, and we intend to take advantage of it and lead the way through technological innovation. This investment is expected to significantly elevate India's standing in the global semiconductor manufacturing arena and foster the development of a comprehensive domestic high-tech manufacturing ecosystem, all while supporting the country's own product ecosystem.

The Tata Group and its clients around the world place a high value on sustainability, and the planned site in Jagiroad is ideally situated with access to green power and a plenty of water. Additionally, Assam is nearer to the present-day semiconductor packaging and testing hubs in Singapore, Malaysia, Taiwan, and Vietnam. All of North-East India's technical and engineering personnel is available in Assam, offering a steady talent pool for this project as well as the ecosystem growth it would spur. Through this new initiative, Tata Electronics hopes to establish the groundwork for the development of an indigenous semiconductor ecosystem in India by bringing to the country a portfolio of cutting-edge semiconductor technologies, an advanced skill set and talent, and a network of suppliers and ecosystem partners involved in semiconductor manufacturing. The semiconductor chips produced here at the Assembly & Test plant will be immediately shipped to OEMs (Original Equipment Manufacturers) and end customers throughout the globe, including India.