India aims to take on leading worldwide chip producers
A new semiconductor plant in India is expected to generate 27,000 jobs
prativad 
The government has launched a number of programs in an effort to enter the profitable sector.
The $3.2 billion semiconductor facility being built by India's Tata Electronics is anticipated to create 27,000 employment.
According to India's ministry of electronics and information technology, the plant will be situated in Assam, the largest state in the country's northeast, and use locally developed technologies to generate around 48 million chips daily.
The plant has already hired around 1,000 locals for the project, Tata chairperson N. Chandrasekaran said at the ‘bhumi pujan’ ceremony (a Hindu ritual performed ahead of construction) for the plant. The facility is expected to generate 15,000 direct and 11,000 to 13,000 indirect jobs when it opens, he said.
In a press release, Tata explained that the chips would be used in automobiles, mobile devices, artificial intelligence (AI), and “other key segments to serve customers globally.”
The move is seen as a major boost for the northeast Indian region. Comprising eight states, it has lagged behind most other parts of India in generating employment opportunities.
Ethnic conflicts and political instability in some states in the area have disrupted economic activity and deterred investment. Moreover, geographical isolation and challenging terrain in the region, connected to the rest of the country by a 20km long corridor, have restricted connectivity and infrastructure development.
The state government of Assam played a key role in the development of the semiconductor plant by signing a 60-year lease agreement with Tata Group for over 170 acres of land in the Morigaon district. The facility will be located on the site of a defunct paper mill.
The move is part of New Delhi’s ongoing effort to boost domestic chip production. In 2021, the government announced the India Semiconductor Mission for the development of semiconductor and display manufacturing in the country. The project has been allotted a budget of nearly $9 billion according to the government.
In February, New Delhi approved three semiconductor plants, including the one being built in Assam, with an outlay of about $15 billion. The two other plants are being built in Gujarat, a national manufacturing hub. In an address to parliament last month, Indian Prime Minister Narendra Modi vowed to make the country a “manufacturing hub of semiconductors” during his third term.
Currently, the semiconductor value chain is a complex worldwide network centered in the US, South Korea, the Netherlands, Japan, Taiwan, and China. It includes the design, manufacturing, and marketing of finished products.
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