Tata’s Mega Assam Semiconductor Plant to Get ₹14,044 Crore Govt Incentive

In a major boost to India’s semiconductor ambitions and Assam’s industrial transformation, the upcoming ₹27,000-crore Tata Electronics semiconductor facility at Jagiroad will receive a total government incentive of ₹14,044 crore , the Assam Assembly was informed on Thursday.

Replying to a query in the House, Industries, Commerce and Public Enterprises Minister Bimal Borah said that the Central government will provide ₹10,255 crore, while the Assam government has sanctioned an additional ₹3,789 crore to support the project and ensure its long-term success.

The plant, being developed by Tata Electronics , is expected to become one of the country’s most significant semiconductor manufacturing investments. The facility will operate as an Outsourced Semiconductor Assembly and Test (OSAT) unit and is projected to produce up to 48 million semiconductor chips per day using advanced packaging technologies such as flip chip and Integrated System in Package (ISIP) .

Beyond its technological importance, the project is also expected to create substantial employment opportunities. According to the minister, the facility is likely to generate more than 27,000 jobs , including around 15,000 direct employment opportunities , providing a major fillip to the local economy.

The semiconductor plant is being established at Jagiroad in Morigaon district , on the site of the former Hindustan Paper Corporation’s Nagaon Paper Mill , which had ceased operations. The redevelopment of the location into a high-tech manufacturing hub symbolizes a dramatic shift from a legacy paper industry to a future driven by electronics and semiconductor production.

The project forms a key part of India’s broader strategy to strengthen domestic semiconductor manufacturing and reduce dependence on imports. With significant support from both the Centre and the Assam government, the Tata facility is expected to play a crucial role in positioning the Northeast as an emerging destination for advanced manufacturing and technology investments.