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Tata Electronics’ upcoming semiconductor facility in Assam is set to receive government incentives worth ₹14,044 crores, providing a significant boost to one of India’s largest semiconductor manufacturing investments.

As per official data shared in the Assam Legislative Assembly, the incentive package includes ₹10,255 crores from the Central Government and ₹3,789 crores from the Assam Government to support the company’s ₹27,000 crores semiconductor project being developed at Jagiroad in Morigaon district.

The project is being developed as an Outsourced Semiconductor Assembly and Test (OSAT) facility, which will play a key role in India’s efforts to establish a robust domestic semiconductor manufacturing ecosystem. Once operational, the facility is expected to package and test semiconductor chips for applications across automotive, consumer electronics, telecommunications, artificial intelligence and industrial sectors.

Industry experts view the incentive package as another milestone in India’s semiconductor strategy, which aims to attract large-scale investments, strengthen domestic electronics manufacturing and reduce dependence on imported semiconductor components. The Jagiroad facility is expected to generate over 27,000 jobs, including about 15,000 direct jobs, contributing significantly to industrial development in Assam while creating a skilled workforce for the country’s expanding semiconductor sector.

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With an investment of ₹27,000 crores, the OSAT facility is expected to manufacture up to 48 million semiconductor chips per day using advanced packaging technologies such as Flip Chip and Integrated System in Package (ISIP). These technologies are increasingly being adopted to improve chip performance, efficiency and miniaturization for next-generation electronic devices.

The semiconductor project forms part of India’s broader ambition to become a global electronics manufacturing hub through strategic investments, policy support and infrastructure development. As semiconductor demand continues to grow worldwide, projects such as Tata Electronics’ Assam facility are expected to strengthen the country’s position within the global semiconductor value chain.

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Commercial production at the facility is expected to begin after project completion, further reinforcing India’s efforts to build a resilient semiconductor ecosystem spanning design, packaging, testing and advanced manufacturing.

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