Guwahati, May 26: Assam Chief Minister Himanta Biswa Sarma on Monday announced that Tata’s semiconductor manufacturing plant at Jagiroad will begin producing 48 million chips daily by the end of the 2025-26 financial year. The facility is set to cater to both domestic and global demand.

The Rs 27,000 crore project, approved by the Union Cabinet in February 2024, is being developed by Tata Electronics Pvt Ltd, a subsidiary of Tata Sons Pvt Ltd. The plant will focus on assembly and testing of semiconductor chips for sectors including automotive, mobile devices, and artificial intelligence.

“All clearances have been given, and work is progressing rapidly. The plant is expected to be ready by the end of this financial year,” Sarma said.

Located in Jagiroad, Assam, the facility benefits from ample water and green power resources. Assam’s proximity to semiconductor hubs in Taiwan, Malaysia, Vietnam, and Singapore adds to its strategic advantage.

The state government is developing the Ratan Tata Electronics Manufacturing City around the plant and has announced additional incentives, including a 60 percent top-up on central government benefits, free land, and GST reimbursements, to attract manufacturers.

Assam has allocated Rs 25,000 crore for semiconductor and electronics manufacturing incentives, complementing the central government’s Rs 22,919 crore Electronics Component Manufacturing Scheme.

Sarma added that companies setting up units in Assam will benefit from combined central and state policies, along with the Northeast-focused UNNATI scheme aimed at promoting industrialization and employment in the region.

Currently, India has five semiconductor units under construction—four in Gujarat and one in Assam—with a sixth approved in Jewar, Uttar Pradesh. The Jagiroad plant is expected to boost India’s semiconductor production capacity significantly.