Syllabus: GS-III: Growth & Development

Why in the news?

Assam is set to make history with the ₹27,000-crore Tata Semiconductor Assembly and Test (OSAT) Project at Jagiroad, described by the Industries Minister as the “symbol of Assam’s industrial resurgence and India’s technology-driven future.” The project, named Ratan Tata Electronics City, is poised to make Assam a major player in the global semiconductor ecosystem.

About the Project

• The Tata Semiconductor Assembly and Test (TSAT) facility is the largest-ever industrial investment in Assam and the second-largest semiconductor investment in India.
  
• Scheduled for operation by 2026, it will produce 48 million chips per day, using advanced packaging technologies like wire bond, flip-chip, and system-in-package (SiP).
  
• The project is expected to generate 27,000 direct and indirect employment opportunities, creating a new generation of tech-oriented jobs in the Northeast.
  
• During the Advantage Assam 2.0 Global Summit, 14 MoUs were signed with global companies such as DISCO Corporation, Resonac Holdings (Japan) and Heraeus Industries (USA), enhancing foreign collaboration and technology transfer.
  

About Semiconductor Technology

A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. It can be made from silicon, germanium, or gallium arsenide, and is used in products ranging from AI chips and mobile phones to automotive sensors and defence electronics.

Broadly, under the India Semiconductor Mission (ISM), India has approved ten semiconductor manufacturing projects with a cumulative investment of over ₹1.60 lakh crore across states like Gujarat, Assam, Odisha, Andhra Pradesh, Uttar Pradesh and Punjab.

Potential for Growth in Assam

• Strategic Location: Assam’s proximity to Southeast Asia aligns with the Act East Policy, opening trade and export opportunities.
  
• Skilled Institutions: Presence of IIT Guwahati and Assam Engineering College ensures a talent pipeline for R&D and innovation.
  
• Policy Support: Under UNNATI Scheme and Assam Electronics (Semiconductor, etc.) Policy, 2023, the government offers 40% additional CapEx assistance beyond central incentives.
  
• Industrial Infrastructure: Growing Special Economic Zones (SEZs) and connectivity projects (Indo-Bangla Maitri Bridge, Agartala–Akhaura rail link) support global supply chains.
  

Significance for Assam and India

• Industrial Transformation: Positions Assam as a new industrial and technological hub in eastern India.
  
• Economic Boost: Expected to attract foreign direct investment and create large-scale employment.
  
• Skill Development: Collaboration with local institutions to introduce semiconductor training programs.
  
• National Self-Reliance: Supports India’s vision under the National Semiconductor Mission (2021) to become a global chip manufacturing leader.
  

Challenges

• Water and Power Demand: Semiconductor production is water-intensive and requires uninterrupted electricity.
  
• Skilled Labour Gap: Need for specialized training in chip design and manufacturing.
  
• Supporting Industries: Absence of strong ancillary industries like precision chemicals and materials.
  
• Environmental Sustainability: Proper waste management and pollution control mechanisms are essential.
  

Way Forward

• Launch Semiconductor Skill Mission in collaboration with IIT Guwahati and industry players.
  
• Introduce water recycling and conservation systems to ensure sustainability.
  
• Promote startups and ancillary units through incentives and innovation hubs.
  
• Create a Semiconductor Corridor linking Assam with other Northeast industrial nodes.
  

Exam Hook: Key Takeaways

• Project: Tata Semiconductor OSAT Project, Jagiroad (₹27,000 crore).
  
• Output: 48 million chips/day by 2026.
  
• Policy Support: Assam Electronics (Semiconductor, etc.) Policy, 2023.
  
• Significance: Boost to Act East Policy, employment generation, and India’s tech self-reliance.
  

UPSC/APSC Mains Question:
Discuss the potential and challenges of developing the semiconductor industry in Assam in light of the Tata Semiconductor Assembly and Test Project.

One-line wrap:
The Tata Semiconductor Project at Jagiroad heralds Assam’s transformation from an agrarian state to a global electronics hub, fusing technology, investment, and inclusive growth.
https://www.sentinelassam.com/cities/guwahati-city/assams-industrial-growth-reflects-in-jagiroads-rise-minister-bimal-borah