TATA Electronics is set to begin semiconductor chip packaging at its ₹27,120‑crore OSAT facility in Jagiroad, Assam, with phased qualification already underway, reported MoneyControl.

The plant will have the capacity to produce up to 48 million chips per day, serving global automotive, industrial, telecom, consumer electronics, and AI markets by the end of 2026.


TATA Electronics is preparing to launch semiconductor packaging operations at its upcoming outsourced semiconductor assembly and test (OSAT) plant in Jagiroad, Assam. This move is part of India’s broader ambition to establish itself as a global semiconductor hub.

The company has already started limited commercial dispatches from its first OSAT unit in Vemagal, Karnataka, and is now shifting focus to the large‑scale greenfield facility in Assam.

The Assam project represents a significant investment of ₹27,120 crore and will feature nearly one million square feet of cleanroom space. The facility is designed to manufacture up to 48 million chips per day once fully operational, targeting sectors such as automobiles, telecommunications, consumer electronics, and AI‑driven technologies.

To accelerate readiness, TATA Electronics has decided to utilise a small portion of the plant ahead of full completion, enabling early qualification and operational validation. This phased rollout ensures that cleanroom environments and industry standards are met before full‑scale production begins.

A team from the Karnataka unit will relocate to Jagiroad by the end of May to oversee technology and manufacturing transfer. Hundreds of advanced tools are expected to be moved to Assam by September, allowing TATA Electronics to fine‑tune logistics, production systems, and supply‑chain coordination. This approach reduces risks of costly re‑engineering and ensures a smoother transition into large‑volume manufacturing later in the year.

The strategic pivot to Assam is aimed at showcasing TATA Electronics’ manufacturing capabilities to overseas clients while rapidly scaling production to meet surging demand from automotive and industrial sectors.

The company’s decision to replicate operations from Karnataka to Assam highlights its intent to build global trust and demonstrate scalability. This aligns with the India Semiconductor Mission, which seeks to reduce import dependence and strengthen domestic manufacturing.

Recently, Assam Chief Minister Himanta Biswa Sarma visited the site and expressed satisfaction with the progress achieved jointly by the state administration and project teams. He described the upcoming semiconductor production as a major milestone for both Assam and India’s semiconductor ambitions. 

His remarks underscore the importance of the project in positioning Assam and the wider northeast region as a key player in India’s technological future.

On 16 May, TATA Electronics signed a memorandum of understanding with Dutch chip equipment manufacturer ASML for lithography systems.

These systems are critical for India’s first semiconductor fabrication ecosystem and will strengthen the supply chain by enabling advanced packaging technologies such as wire bond, flip chip, and integrated systems packaging. The partnership with ASML is expected to provide TATA Electronics with cutting‑edge capabilities, ensuring competitiveness against established OSAT giants in Taiwan and South Korea.

While the project is ambitious, challenges remain. Smooth integration with upstream wafer fabs and downstream electronics manufacturers will be essential, and execution timelines must be carefully managed to avoid delays in equipment installation. Nonetheless, the phased qualification strategy adopted by TATA Electronics demonstrates a proactive approach to mitigating risks and ensuring compliance with global standards.

The Jagiroad facility is not only a technological milestone but also a strategic investment in India’s self‑reliance. By scaling operations in Assam, TATA Electronics is contributing to the nation’s long‑term goal of reducing dependence on imported semiconductor components, which currently costs India billions annually.

The project is expected to generate significant employment opportunities and catalyse regional development, reinforcing India’s position in the global semiconductor supply chain.

Agencies