Assam eyeing Rs 40,000 crore investment in semiconductor sector

Assam is eyeing an investment to the tune of Rs 40,000 crore in the semiconductor industry. Speaking at the state assembly, Chief Minister Himanta Biswa Sarma said that he is making progress in this direction in terms of discussions, adding that Assam is competing with three other states including Gujarat and Odisha in this segment. He also revealed that he is hopeful of making a breakthrough, according to reports. 

As part of encouraging investment in this sector, the Assam government has also approved the Assam Electronics (Semiconductor, etc) Policy 2023, Sarma added, further stating that states such as Uttar Pradesh, Gujarat, and Odisha already have policies for the semiconductor sector in place. Assam has announced a policy that aims to provide capital investment subsidy, and the state’s new production-linked incentive policy, they will soon be attracting investments for production of semiconductors in Assam, reports cited Sarma as saying. He further said that many industrialists have expressed interest in the state due to the presence of clean and pure water, which is important in the production of semiconductors. 

Reports also cited Sarma as saying that currently, Assam only generates power amounting to 400 MWs at a cost of Rs 9, translating to lesser tariff in the domestic category in comparison with other states. 

India - the semiconductor hub

Sarma’s aims of attracting the semiconductor industry to Assam are in line with India’s growing prowess in the sector. Due to their extensive use in electronic equipment and devices, the demand for this crucial component has been at a high, especially driven by factors such as the adoption of 5G technology and rapid digitalisation. According to the estimates cited by the government, the semiconductor market in India is expected to grow at a CAGR of 17.10 per cent in the next five years, reaching $80.3 billion by 2028. 

In order to promote India’s research and development capabilities in this segment, the Union Ministry of Electronics and IT (MeitY) has announced an India Semiconductor Mission (ISM) with an investment of $10 billion, including manufacturing incentives and design-linked incentive scheme.