Will Assam be Able to Deliver Made In India Chip by 2026?
In Jagiroad, Assam, a ₹27,000 crore semiconductor assembly and test facility is under construction on the site of a defunct paper mill. On Monday, chief minister Himanta Biswa Sarma engaged with multiple industry leaders at the Assam Electronics Roundtable 2025 in New Delhi to propel Assam’s progress in semiconductors, ECMS, and the electronics sector. This initiative for this unit, led by Tata Electronics, aims to position India as a significant player in the global semiconductor industry and produce around 48 million chips daily. Prime Minister Narendra Modi recently highlighted the project’s potential, stating that the first ‘Make in India’ chip will soon emerge from the Northeast. This follows the expectations of the first chips coming out of Tata’s Dholera facility in Gujarat. In addition to Assam’s Tata Semiconductor Assembly and Test (TSAT), Tata Electronics appointed Tim McIntosh (former Intel) as vice president and head of operations and manufacturing excellence. However, while the Jagiroad facility holds promise, Assam’s socio-political complexities, infrastructure gaps, and global competition raise critical questions about its ability to deliver on India’s semiconductor ambitions. The Roundtable The roundtable drew strong support from industry bodies like the India Electronics and Semiconductor Association (IESA) and SEMI, which commended Assam’s proactive push under the Electronics Components Manufacturing Scheme (ECMS). Describing Assam’s ECMS framework as one of the most progressive in the country, with up to 60% incentives and additional policy backing, IESA president Ashok Chandak underscored the state’s multi-pronged strategies to maximise the global impact of the ECMS. “With the powerful combination of the ECMS Production Linked Incentive (PLI) scheme, the Semicon India program, and progressive state government policies, India is poised to build a globally competitive and resilient electronics manufacturing ecosystem,” said Chandak. With senior representatives from NXP Semiconductors, Kaynes Technology, and RamaKrishna Electro Components in attendance, discussions focused on international collaboration, strengthening the local component ecosystem, and encouraging EMS and OEM firms to invest in the region. While Sarma’s engagements with companies like ASMPT, AEM, and the Singapore Semiconductor Industries Association during his recent Singapore visit for the “Advantage Assam 2.0” summit signal growing interest, some players remain sceptical. Karnataka’s IT/BT minister Priyank Kharge, for instance, criticised the project, arguing that Assam lacks the industrial ecosystem to support such an ambitious venture. This sentiment reflects broader doubts about the state’s readiness. “They don’t have an ecosystem of research there. They don’t have an ecosystem of incubation. They don’t have an ecosystem of innovations…when 70% of the chip designing talent lies in Karnataka, I don’t understand why the government wants to push to another state by using political clout,” he said to Moneycontrol. This followed a public spat between the two ministers (Kharge and Sarma), during which they both expressed criticism for the other state’s talent and progress. Infrastructure and Talent The transformation of the old paper mill into a semiconductor facility signifies a shift in Assam’s industrial landscape. The project is part of a broader strategy to decentralise India’s tech manufacturing and integrate the Northeast into the national industrial framework. The facility is expected to commence chip production by 2026, contributing to India’s goal of becoming self-reliant in semiconductor manufacturing. McIntosh’s experience is anticipated to enhance the plant’s manufacturing capabilities to ensure operational excellence. Additionally, the company recently appointed KC Ang, formerly with GlobalFoundries, to lead Tata Semiconductor Manufacturing and oversee the company’s foundry operations at the Dholera facility. Union Minister Ashwini Vaishnaw highlighted a few months ago on LinkedIn that the Tata semiconductor plant in Jagiroad is progressing steadily and aims to deliver “Made in India, Made in Assam” chips by 2026. He noted, “Reliable utilities are critical for semiconductor manufacturing,” as the government laid the foundation for a ₹111 crore water supply project. Efforts are also underway to develop specialised training programmes in collaboration with the MoU signed with the National Institute of Electronics & Information Technology (NIELIT) to cultivate a skilled workforce for the semiconductor sector. However, Assam’s broader infrastructure deficits could undermine these efforts. The state’s industrial ecosystem is underdeveloped compared to tech hubs like Karnataka or Tamil Nadu, lacking established supply chains, ancillary industries, and robust logistics networks. The Northeast’s geographical isolation and less-developed road and rail infrastructure could hinder the seamless export of chips to global markets like Japan, the US, and Europe, where Tata is already sending packaged chips from its Bengaluru R&D centre. Power reliability is another concern. Semiconductor manufacturing requires uninterrupted, high-quality electricity, but Assam has historically faced power shortages. While the state invests in renewable energy projects like rooftop solar and floating solar plants, these initiatives may not meet the facility’s immediate needs by 2026. Hiring from Southeast Asia To support the growing industrial ecosystem, a housing facility for 40,000 technical workers is planned. Tata Electronics is also promoting a hiring drive, especially in Southeast Asian countries like Malaysia and Singapore. According to NE Today, Sarma also leads efforts to attract international investment. During his recent visit to Singapore for the “Advantage Assam 2.0” summit, Sarma engaged with business leaders and key stakeholders to showcase Assam’s potential as a centre for semiconductor production. He toured advanced facilities at AEM Singapore and met with members of the Singapore Semiconductor Industries Association, inviting companies across the semiconductor value chain to explore opportunities in Assam. Highlighting the state’s vision, Sarma also unveiled plans for a World Skill Centre, designed to align local talent with Industry 4.0 requirements. Semiconductor manufacturing requires large amounts of water, energy, and chemicals. While the facility is strategically located with access to “abundant water and green power,” Assam’s environmental vulnerabilities, such as frequent flooding from the Brahmaputra River, could complicate operations. A Global Reality Check India’s semiconductor ambitions, including the Assam project, face stiff global competition and economic challenges. Established hubs like Taiwan, South Korea, and China dominate the global supply chain, benefiting from decades of investment and expertise. Even within India, states like Gujarat and Karnataka have a head start, with Gujarat’s Dholera facility set to produce chips before Jagiroad. Tata Electronics has already begun exporting semiconductor chips packaged at its Bengaluru-based research and development centre to partners in Japan, the US, and Europe. As the Jagiroad facility progresses, its success will depend on overcoming infrastructure challenges and developing a skilled workforce. The project’s outcome will be a significant indicator of India’s capacity to establish itself in the global semiconductor industry.
PM Modi recently stated that the first ‘Made in India’ chip will soon emerge from the Northeast.
PM Modi recently stated that the first ‘Made in India’ chip will soon emerge from the Northeast.
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