Assam to join global semiconductor ecosystem in 2026: FM Nirmala reviews Tata OSAT

Assam is set to become a key hub for semiconductor manufacturing in Northeast India, following Finance Minister Nirmala Sitharaman’s visit to the Tata Electronics OSAT (Outsourced Semiconductor Assembly and Test) Centre at Jagiroad, Morigaon district. She was accompanied by Chief Minister Himanta Biswa Sarma.

The Jagiroad OSAT Centre is a cornerstone of India’s semiconductor mission, using advanced packaging and testing technologies. Tata Electronics is leading the project while working with global partners for equipment, automation, and workforce training. The facility is expected to generate around 15,000 direct jobs and 11,000–13,000 indirect jobs, with the first phase scheduled for April 2026.

The centre can produce up to 48 million simpler semiconductor chips per day, leveraging highly automated assembly and testing lines. Production of advanced, high-end chips will be lower due to complex testing and packaging requirements. Experts say this scale positions Assam as a high-volume semiconductor hub in India’s Northeast.

Economically, the project is expected to stimulate industrial growth, attract ancillary businesses, and strengthen domestic semiconductor supply chains, reducing import dependence. It is part of the India Semiconductor Mission (ISM) and backed by the Rs 76,000 crore Production Linked Incentive (PLI) scheme. Across India, 10 semiconductor projects have been approved in six states, with total investments exceeding Rs 1.6 lakh crore.

Semiconductor assembly and testing consume large amounts of water, energy, and chemicals, raising environmental concerns. Assam’s sensitive ecosystems require strict waste management, water recycling, and energy-efficient practices. Green technologies will be crucial to ensure sustainable operations.

Sitharaman encouraged local entrepreneurs and students to engage with the state’s emerging industrial and technological opportunities and highlighted the Rs 1 lakh crore R&D fund for innovation and research in both public and private sectors.

India’s semiconductor industry is still young but growing fast. By the end of 2025, the country will have several facilities for designing, assembling, and testing chips, but only a few places can manufacture high-end chips from scratch (wafer fabrication). The main centers are in Gujarat, Uttar Pradesh, Punjab, Odisha, Andhra Pradesh, and Assam. Most of India’s focus is on chip assembly and testing, while advanced chip-making occurs in pilot units like the Sanand OSAT line in Gujarat. The government is supporting the industry through the India Semiconductor Mission and PLI schemes to increase domestic production, reduce imports, and make India competitive globally.

By contrast, leading international semiconductor companies like TSMC (Taiwan) and Samsung (South Korea) operate massive fabrication plants. TSMC’s advanced fabs produce millions of chips daily, including high-end logic chips for smartphones, computers, and AI processors. Samsung similarly produces millions of memory and logic chips daily. Intel (USA) and other OSAT companies like ASE Group, Amkor, and JCET also make millions of chips, mostly in assembly and testing, but high-end chips take longer to produce due to complexity.

These chips are used in smartphones, computers, AI devices, cars, medical equipment, and defense systems worldwide. India’s OSAT facilities, like Jagiroad, mainly focus on simpler chips used in consumer electronics and industrial applications but are expected to gradually expand into more advanced segments.

With projects like Jagiroad and policy support from the government, India aims to become a significant player in the global semiconductor ecosystem, reduce dependence on imports, and provide high-tech jobs for the future.