Tata Electronics, the semiconductor arm of India's Tata Group, has started chip packaging at its Jagiroad facility in Assam, marking the first production activity at the ₹27,120 crore ($2.83 billion) plant. One complete production line and its manufacturing team relocated from the smaller Vemagal facility in Karnataka to begin operations ahead of schedule.
Once fully operational by the end of 2026, the Assam plant will package up to 48 million semiconductor chips daily. Customers include global automotive, industrial, telecom, consumer electronics, and AI device manufacturers.
Assam Chief Minister Himanta Biswa Sarma confirmed the timeline during a site visit on Wednesday, May 20, stating that production will start soon and deliver what he called "Made in Assam semiconductor chips" in his Linkedin post.
Damilare Odedina
What Tata is manufacturing at the Assam facility
Jagiroad operates as an OSAT plant, handling outsourced semiconductor assembly and test work. Tata receives silicon wafers from chip designers, then packages, tests, and prepares them for shipping to end customers.
Three packaging technologies run at the facility depending on customer requirements: wire bond for traditional chips, flip chip for higher performance applications, and integrated system packaging for complex multi-chip products.
Small shipments already started from Vemagal earlier this year to prove manufacturing capabilities to global clients. Moving that proven production line to Assam lets Tata serve customers from the larger facility immediately rather than waiting for construction to finish completely.
Vemagal's team relocated by the end of May to replicate their work in the new cleanrooms, which span one million square feet across the complex.
When the plant reaches full production capacity
Tata activated one section of the facility while construction continues on other sections. Equipment installation will accelerate through September, with hundreds of manufacturing tools moving in before the year ends.
Neil Shah, vice president at Counterpoint Research, told the Economic Times that this staging method is standard for semiconductor plants because it lets engineers refine manufacturing processes and calibrate precision equipment before scaling to full volume.
Government support came through India's semiconductor manufacturing incentive program and Assam's electronics policy, which provide capital subsidies and infrastructure assistance. Tata signed an agreement on May 16 with ASML, the Dutch equipment maker that supplies advanced lithography systems to the global semiconductor industry, for tools needed at both the Assam packaging facility and a separate chip fabrication plant the company is building.
Vemagal will continue running at full capacity while the Assam plant scales up, giving Tata two operational sites by year end. Daily output will eventually match the production volume of established Asian chip packaging hubs in Taiwan and South Korea.
Damilare Odedina
