Tata’s Semiconductor Plant in Assam: 4.83 Crore Chips Daily, 27,000 Jobs Created
Tata Group Begins Construction of ₹27,000 Crore Semiconductor Assembly and Test Facility in Assam
The Tata Group has commenced the construction of a semiconductor assembly and test facility in Assam, valued at ₹27,000 crore. This plant is expected to produce 48.3 million semiconductor chips daily and is anticipated to become operational by 2025.
Uses of the Chips
The chips manufactured at this facility will be utilized in various sectors, including electric vehicles, communication, and network infrastructure. This project received approval from the central cabinet on February 29, 2024, and is part of India’s semiconductor mission.
Job Creation
According to Tata Sons Chairman N. Chandrasekaran, “This plant is expected to create 27,000 jobs, with 15,000 direct and 12,000 indirect jobs. We hope to complete this project by 2025 and start operations swiftly.”
Tata Group to Establish Two Semiconductor Plants in India: One in Gujarat and One in Assam
On March 13, Prime Minister Narendra Modi laid the foundation for three semiconductor facilities, two of which are being developed in Gujarat and one in Assam. The Tata Group is responsible for the construction of two of these plants—one located in Dholera, Gujarat, and the other in Jagiroad, Assam.
Government Initiatives to Boost Semiconductor Production
To encourage semiconductor production in India, the government has also announced a Production-Linked Incentive (PLI) scheme. The value of the Indian semiconductor market was estimated at $27.2 billion in 2021, with projections indicating it could grow at an annual rate of 19%, reaching $64 billion by 2026.
Taiwan’s Dominance in Semiconductor Production
According to the Semiconductor Industry Association (SEMI), Taiwan accounts for 60% of global chip fabrication capacity. TSMC alone manufactures nearly half of the world’s semiconductors.
Understanding Semiconductor Chips
Semiconductor chips are made from silicon, which controls the flow of electricity in circuits. These chips act as the “brains” of gadgets, enabling them to operate. No electronic device is complete without them; computers, laptops, cars, washing machines, ATMs, hospital machines, and smartphones all rely on semiconductor chips for functionality.
