Tata Electronics on Saturday performed the groundbreaking ceremony of Rs 27,000 crore assembly testing marking and packaging (ATMP) unit in Jagiroad, Assam.

The unit is expected to commence operations by mid-2025, and will generate 27,000 direct and indirect jobs, the company said.

“At the Tata group a unique positioning we have taken to play in the entire value chain of the electronics ecosystem,” said N Chandrasekaran, chairman of Tata Sons at the groundbreaking ceremony.

“Considering that we want to move fast, we are trying to accelerate the building of this factory. We hope sometime in 2025 we will be able to complete part of the facility and quickly start our operations,” Chandrasekaran said.

“All the three major  chip technologies being used in this plant including flip chip and I-SIP (integrated system in package) technologies, are indigenously developed,” said Ashwini Vaishnaw, minister of electronics and IT.

“The proposed capacity of this unit is 48.3 million chips per day,” he added.

In February, the Union Cabinet had approved semiconductor projects worth Rs 1.26 trillion, under the Rs 76,000 crore semiconductor incentive scheme. Among those projects, Tata’s Rs 91,000 crore fabrication unit in Dholera, Gujarat and Rs 27,000 crore ATMP unit were there.

Chandrasekaran said advanced packaging and assembly of chips will happen at the Assam unit and the company will also be adding additional capability to be able to design the chips for any industry.

The chips that will be assembled at the unit will power the electric vehicles, mobile phones, laptops, healthcare devices of global companies.

“Once this facility expands, it will bring the entire semiconductor ecosystem companies. We will need several people (companies) who will produce different components and as we grow while those people will initially start to supply they will set up their units here,” Chandrasekaran said, adding that the company will also invest in research and development.

Tata has already employed 1,000 people from Assam for the chip assembly unit who are undergoing training.

The setting up of this facility will herald industrial development in the state leading to employment opportunities for the youth, said Himanta Biswa Sarma, chief minister of Assam.

Ashok Chandak, president of India Electronics and Semiconductor Association (IESA) said, “this mega latest technology ATMP/OSAT facility is expected to pave the way for more ATMP facilities across the country and contribute towards the upcoming $100 billion semiconductor market of India by 2030.”

From the country’s upcoming first fab unit, Tata is aiming to  produce chips in the calendar year 2026.