Tata Electronics to start chip packaging at upcoming Assam unit

Offering a boost to the country’s semiconductor manufacturing ambitions, Tata Electronics plans to start chip packaging for global automotive and industrial clients at its upcoming outsourced semiconductor assembly and test (OSAT) facility in Assam. While the Tata Group company has already initiated small-scale shipments from its first commercial OSAT facility in Vemagal, Karnataka the strategic pivot to the greenfield high-volume manufacturing unit in Jagiroad Assam is aimed at building trust among global clients about the company’s capabilities while ensuring immediate scalability to meet surging automotive and industrial demand.

The strategy is aimed at showcasing Tata Electronics’ manufacturing capabilities to overseas clients while rapidly scaling production to meet growing demand from automobile and industrial sectors.

The company has also decided to utilize a small section of the Assam project ahead of full completion in order to fast-track qualification and operational readiness. Equipment installation and process validation are being carried out in phases so that the facility can transition smoothly into large-volume manufacturing by the end of the year.

According to ET, the Rs 27,120-crore Jagiroad semiconductor project will house nearly one million square feet of cleanroom space. While production lines at the Karnataka unit will continue, a portion of the operations is expected to be replicated in Assam. A team from Vemagal is likely to relocate to Jagiroad by the end of this month to oversee technology and manufacturing transfer.

Assam Chief Minister Himanta Biswa Sarma recently visited the site and expressed satisfaction with the progress achieved jointly by the state administration and project teams. In a post on X, Sarma said semiconductor production from the Assam facility would begin soon and described it as a major milestone for both Assam and India’s semiconductor ambitions.