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Last Updated on 25th June 2024
Assam CM, Himanta Biswa Sarma, stated on Friday that Tata Group is planning to set up an OSAT (outsourced semiconductor assembly and testing) facility in Assam. For this semiconductor unit, the group will invest more than USD 4 billion.
Furthermore, Tata Group has already submitted the investment proposal to the Central Government for the construction of the facility in the Electronic Center at Jagiroad, which is about 55 kilometers away from the state's largest city, Guwahati.
The green field venture, Tata Electronics Private Limited, will set up the OSAT facility. OSAT facilities play a major role in the semiconductor industry as they package and test silicon chips produced at foundries before their release on the market.
The facility's main emphasis will be on the critical operations of semiconductor packaging and assembly, which are integral components of the domestic supply chain. Additionally, the new unit will provide employment opportunities for more than 1,000 individuals.
This development happened months after the Assam government approved the Assam Electronics Policy 2023, in which the state competes with Gujarat, Orissa, and Uttar Pradesh. These three states have introduced policies to bolster the semiconductor industry. The new policies and market trends in semiconductor industry attracts more investments
The government of India is providing around USD 9 billion in DLI (design-linked incentives) for new semiconductor units. If the investment proposal is approved, smaller applicants will face tight competition as half of the allotted budget will be exhausted. Recently, IT minister Ashwini Vaishnaw mentioned that the government is expecting an investment of around USD 8–12 billion in the semiconductor manufacturing industry.
Tata Electronics Private Limited (TEPL) is a greenfield venture of the Tata Group, established in 2020 with a focus on precision manufacturing and electronics manufacturing in India. The organization aims to leverage India's skilled workforce and contribute to the Make in India initiative.
Meanwhile, Tata Electronics is currently in the process of acquiring Wistron's iPhone manufacturing facility in Karnataka. This acquisition will significantly boost their capacity and expertise in electronics manufacturing The company is also building a facility in Tamil Nadu to manufacture mobile components.
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