Tata Group signs lease agreement with Assam govt to set up Rs 27,000 crore semiconductor unit

The Tata Group has signed a 60-year lease agreement with the Assam government to establish a semiconductor facility at Jagiroad in the Morigaon district.

The agreement, finalized at the sub-registrar's office, was signed by Tata Group Board member Ranjan Bandopadhyay and Assam Industrial Development Corporation's (AIDC) manager (tech) and project in-charge Dhiraj Pegu.

District Commissioner Devasish Sharma, along with Tata Group officials Kaninika Thakur, Ashish Mishra, and Avinash Dhabade, were present at the signing.

What is the purpose of the facility?

The semiconductor plant will be built on the site of the former Hindustan Paper Corporation Limited with an investment of Rs 27,000 crore. The first phase of the facility is expected to become operational by mid-2025.

The plant aims to meet growing global demands in artificial intelligence (AI), industrial, and consumer electronics.

Tata plans to focus on three key platform technologies: wire bond, flip chip, and integrated systems packaging (ISP) technologies, with plans for advanced packaging technologies.

Generating over 30,000 jobs

The new facility is expected to generate over 30,000 jobs. District Commissioner Devasish Sharma emphasized the importance of this development, saying, "The transfer of land has been completed. The team from Tata Group informed us that work will commence soon. We express our gratitude to them."

Assam Chief Minister Himanta Biswa Sarma highlighted the initiative's impact on youth employment, stating that 1,500 youths from Assam, mainly women, are already undergoing training at Tata facilities in and around Bangalore.

The training aims to place them in leadership positions once the semiconductor facility becomes operational in 2025.

The Tata Group plans to co-locate a Skill Development Centre within the semiconductor facility's premises in Jagiroad.

Chief Minister Sarma said, “Today during my deliberations with the Tata leadership we agreed to create a Skill Development Centre that will be co-located within the premises of the semiconductor facility in Jagiroad. This centre will empower youths from Northeast by offering them courses in Artificial Intelligence, semiconductors & electronics and help them in securing jobs in the Jagiroad unit.”

The initiative aims to provide specialized training in AI, semiconductors, and electronics, enhancing job opportunities for local youth in the burgeoning semiconductor industry.