Can Tatas make Assam’s tech industry boom?

Simanta Barman

(simantabarman.work@gmail.com)

The semiconductor assembly and test facility coming up in Jagiroad is creating all the buzz, and rightly so. For a state like Assam that is yet to witness a tech-led industrial revolution, the Tatas might be the enablers if they manage to tick the boxes. Being a state abundant in natural resources and having an economy that thrives primarily on agriculture, Assam poses more than one concern when it comes to big industrial projects.

The semiconductor facility in Assam is being dubbed the nation’s first indigenous semiconductor assembly and testing facility that would serve “global customers.” Will this be one of Assam’s significant steps to go global in the ensuing tech revolution? Prospects are there. A significant 27 thousand crores of rupees investment makes it a capital-intensive project that brings out the discussions on in what ways Assam will benefit. For starters, the project aims at creating 15 thousand direct and 11–13 thousand indirect jobs. With the project being a foundational one, the employment opportunities are projected to stem from various upstream and downstream industries.

During the ‘bhumi-pujan’ ceremony held recently, it was announced that a group of 1,000 girls from Assam is already undergoing training in Tamil Nadu to become industry-ready. For Assam, this is a positive stride for employment generation as well as women’s empowerment. The Ministry of Electronics & Information Technology and Information and Broadcasting also states that under the government’s semiconductor policy, 85,000 B.Tech, M.Tech, and PhD students are being trained in semiconductor chip design at 113 academic institutions across the country, nine of which are in the Northeast—the NITs of the eight states and NEHU, Meghalaya. For any such heavyweight R&D project, strategic involvement of technical institutions from the region for upskilling is crucial. With IIT Guwahati and IIIT (Indian Institute of Information Technology) Guwahati being at the forefront of R&D and upskilling, it would be imperative to initiate short-term upskilling courses and R&D collaborations as the project gets going.

Assam is the second state after Gujarat where the semiconductor facility would fall under the India Semiconductor Mission. The necessity for such an indigenous mission comes primarily from global geopolitical concerns. With the semiconductor industry booming at record speed (projections citing a trillion-dollar global industry by 2030) and a steep surge in supply demand, a’semiconductor movement,’ as dubbed by N Chandrasekaran, Chairman, Tata Sons, in his speech during the ‘bhumi-pujan’ ceremony, is the need of the hour. Tata Electronics Pvt. Ltd., under which the project is coming up, also lauds Assam’s proximity to the current semiconductor packaging and test hubs in countries like Taiwan, Malaysia, Vietnam, and Singapore in a press statement.

Now, the concern of environmental impact comes. Globally, the semiconductor industry is seen to present a paradox in the face of development. On one hand, an upsurge in semiconductor demand is integral to the whole electric vehicle (EV) movement and other renewable energy industries like solar arrays, wind turbines, etc., while on the other hand, the chip fabrication plant takes up a very high quantity of water and produces hazardous substances. This paradox is not completely overlooked by the industry, as steps are being proposed globally to cut down emissions and go net zero. Yet, complications are aplenty for a large-scale industry like this.

In the context of the Assam plant, however, this is going to be an ATMP (Assembling, Testing, Marking, and Packaging) unit, with the fab unit being set up in Gujarat. This means it would take up less water than a fab, and on a reusable model, a good percentage of used water can be reused as well, assuming that is on the cards once the Assam unit gets operational. Another concern is the impact it would have on the nearby habitats. A thorough plan at both the central and state levels is necessary to assess the potential impact of the project and ways to mitigate it. From Tata’s end, it is stated that the project is “strategically located with access to abundant water and green power—a key sustainability consideration for the Tata group and its customers globally.” The use of green power can be a strategic step to maintain the sustainability cycle throughout. Also, Tata’s holistic net-zero commitment with a 2045 timeline across the conglomerate may contribute to aligning the sustainability aspect. Considerable deliberation with Assam’s environmental bodies, representatives from the nearby areas, and outlining a stringent state policy to safeguard the interests of the state and the public would be essential as the operations began.

Nevertheless, from an industrial and employment generation point of view, the semiconductor facility is an essential development for Assam. The youths from the Northeast lack good opportunities at home, and the consensus is more driven towards government jobs, which limits entrepreneurial and industry-focused potential. With the ensuing upskilling measures both at the central and state levels and the potential for rampant collaboration for research and development with the institutions in the region, the project could very well bring about a change. With the whole world at the convergence of Industry 5.0, where automation and technological advancements take the lead, while the government and industry are ‘looking east,’ should Assam look away? Perhaps not. This can be the start of a movement for Assam and the North-East, with sustainability and employment diversification at the core.