Tata Group to boost Assam's Semiconductor Industry: Ratan Tata
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Tata Group to boost Assam's Semiconductor Industry: Ratan Tata

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Ratan Tata, chairman emeritus of Tata Sons, asserts that the Tata group aims to position Assam as a significant contributor in the realm of advanced semiconductor technology. "This new development will put Assam on the global map", the octogenarian industrialist who led the $150-billion Tata Group for decades says in a post on X. Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) will set up a semiconductor unit in Morigaon, Assam, with an investment of Rs 27,000 crores. 

The Tata Group is constructing India's inaugural semiconductor fabrication facility in Dholera, Gujarat. Collaborating with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), Tata Electronics is spearheading this endeavor, investing Rs 91,000 crore. Situated in Prime Minister Narendra Modi's home state, the facility aims to generate 50,000 wafer starts per month (WSPM) of 28-nanometer chips. These chips will cater to various sectors including electric vehicles, telecommunications, defense, consumer electronics, displays, and power electronic

After observing the global chip competition for many years, India has ultimately opted to commence chip manufacturing from the ground up. The disruptions in the supply chain due to the COVID-19 pandemic prompted a reassessment of the significance of the domestic semiconductor industry. With incentives totaling Rs 76,000 crore, the Narendra Modi government aims to encourage companies to produce chips within India. The government intends to subsidize half of the expenses for approved projects.

From smartphones to automobiles, chips serve as the backbone of various technologies. They are integral to the thriving artificial intelligence (AI) sector as well. Establishing a domestic chip industry is anticipated to diminish dependence on imports and mitigate supply chain vulnerabilities. India's emerging chip manufacturing sector is poised to offer assurance to foreign firms seeking to diversify their production away from China. India is strategically focusing on every aspect of the semiconductor value chain, beginning with design. The subsequent stages include semiconductor fabrication, followed by assembly, testing, marking, and packaging (ATMP).

India will move from being a back office in semiconductors to creating a product development ecosystem, says the Union minister. "We are moving from design to fab to the ATMP ecosystem. Throughout this value chain, all the components will be developed in India. We have our strength in design. Now, as a natural corollary, we have to build the strength in fab and ATMP. We need to be in all three parts of the value chain and that's what we are working on", says Vaishnaw. 

India has a roadmap to develop the semiconductor industry over the next 20 years, says the Union minister. "Within the next five years, our target is to have 3-4 high-volume fabs and create a niche and leadership in at least one product category. That is the way we are working. We will see the first chip rollout in December 2024", he says. Last year, Micron Technology, a computer memory manufacturer, unveiled its intention to construct a chip assembly and testing facility in Gujarat, committing $825 million to the project.