India begins construction of $3.2B semiconductor plant

India's Tata Electronics is embarking on an ambitious project—a ₹27,000-crore (approximately $3.2 Billion, as per current exchange rate) chip assembly plant in Assam, Report informs referring to IndianWeb2.

The semiconductor plant is slated to become operational in 2025 and will create 27,000 jobs initially, said Tata Sons Chairman N Chandrasekaran on the occasion of the chip plant's Bhumi Pujan ceremony on Saturday.

Using indigenously-developed technologies, the plant aims to produce 4.83 crore chips per day. All three major technologies deployed in this plant are developed in India, making it a noteworthy milestone for the semiconductor industry in the country.

Chandrasekaran said that the company has already employed 1,000 people from Assam and as the facility expands it will bring entire semiconductor ecosystem companies.

The Bhumi Pujan (foundation stone laying) ceremony was held in the presence of Assam Chief Minister Himanta Biswa Sarma and Tata Sons Chairman N. Chandrasekaran. The project received approval from the Union Cabinet in February 2024, and construction began shortly thereafter. This development is a significant step toward bolstering India's semiconductor manufacturing capabilities and fostering economic growth.

By establishing indigenous chip manufacturing facilities, India aims to reduce reliance on imports, especially in critical sectors like telecommunications, automotive, and consumer electronics.

Facilities like Tata Electronics’ plant are investing in advanced packaging methods, such as 2.5D and 3D packaging. These techniques enhance chip performance, reduce power consumption, and enable miniaturization.

Semiconductor projects like this will create thousands of high-skilled jobs, contributing to economic growth and skill development. Local chip production encourages innovation by fostering collaboration between academia, startups, and established players.

India can compete globally in emerging technologies like AI, IoT, and 5G with reliable access to chips. Domestic production enhances supply chain resilience, reducing vulnerability to global disruptions.