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The construction of a new semiconductor unit in Assam represents a major advancement in India’s push to develop a comprehensive semiconductor manufacturing ecosystem, furthering the country’s digital ambitions and digital economy. This initiative involves a substantial investment of ₹27,000 crore (US$ 3.27 billion), expected to generate 15,000 direct jobs and between 11,000 and 13,000 indirect jobs. This project is a pivotal step in supporting India’s Act East Policy.
The establishment of this semiconductor facility aligns with India’s broader strategy to bolster its semiconductor and display manufacturing capabilities. The unit, which will have the capacity to produce 4.83 crore semiconductor chips per day, will be instrumental in advancing the country’s technological infrastructure.
It will focus on developing indigenous advanced semiconductor packaging technologies, such as Wire Bond, flip chip, and integrated system in package (I-SIP) technologies. These advancements are critical for key applications in various sectors, including automotive -particularly electric vehicles – communications, and network infrastructure.
This development is part of the Indian government’s broader semiconductor and display manufacturing ecosystem programme, which was officially announced at the end of 2021, with a total outlay of ₹76,000 crore (US$ 9.14 billion). This initiative is aimed at enhancing India’s self-reliance in semiconductor technology and boosting its position in the global supply chain. In June 2023, the Union Cabinet, under Prime Minister Narendra Modi, approved another significant project for semiconductor manufacturing in Sanand, Gujarat, which is progressing rapidly.
The new Assam-based semiconductor unit is expected to have a profound impact on both the technology sector and the broader economy. By focusing on advanced semiconductor packaging technologies, the facility will support the development of cutting-edge products essential for various high-tech applications. This includes improvements in automotive systems, communication networks, and other critical technologies that drive modern economies.
Additionally, the facility’s development underscores India’s commitment to fostering innovation and expanding its technological capabilities. The strategic focus on creating a robust semiconductor manufacturing base highlights the country’s determination to become a global leader in this critical industry sector. The planned investment and job creation are expected to provide significant economic benefits, contributing to regional development and enhancing India’s technological self-sufficiency.
Moreover, the establishment of this semiconductor unit is complemented by efforts to develop a skilled workforce capable of meeting the industry’s needs. Currently, 85,000 individuals are being trained across 113 academic institutions in India, including nine institutions in the North-East region. These institutions are preparing the next generation of semiconductor chip designers at various levels, including B.Tech, M.Tech, and PhD programmes. This talent development initiative is crucial for supporting the semiconductor industry’s growth and ensuring a steady pipeline of skilled professionals to drive future innovations.
As OpenGov Asia reported, India is undertaking a significant transformation to boost its digital economy and IT sector through strategic initiatives aimed at driving growth and innovation. Central to these efforts is the establishment of 65 Software Technology Parks of India (STPIs), designed to enhance IT infrastructure and attract global investment.
The government is also promoting full foreign direct investment (FDI) in IT and rolling out BPO Promotion Schemes to support IT and IT-enabled Services (ITeS) in smaller towns and cities
The new semiconductor unit in Assam represents a significant leap forward in India’s strategy to establish itself as a major player in the global semiconductor industry. By investing in advanced technologies and workforce development, the project aligns with broader national objectives to enhance technological capabilities, support economic growth, and position India as a leading hub for semiconductor manufacturing. This initiative not only contributes to the nation’s technological progress but also strengthens its role in the international technology landscape.
