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Assam cements role as chip-to-defence manufacturing hub with OSAT timeline and new incentives

ADB-backed financing alongside central ministry commitments underwrites Assam’s infrastructure build-out for its electronics, semiconductor and defence ambitions.

Defence corridor
Assam CM, Railway Minister discussion
Himanta Biswa Sarma
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Overview

  • The Tata-led OSAT plant in Jagiroad is set to begin chip assembly by year-end, targeting a daily output of 48 million units.
  • A ₹25,000 crore corpus has been reserved for production-linked and top-up schemes, offering firms a 60% subsidy boost over central incentives plus free land in the Ratan Tata Electronics City.
  • Negotiations with the Asian Development Bank aim to secure loans for Ratan Tata Electronics City infrastructure and a ₹1,000 crore Assam Skill University to train sector-specific talent.
  • Chief Minister Himanta Biswa Sarma won Defence Minister Rajnath Singh’s backing for a proposed defence manufacturing corridor under the Assam Aerospace and Defence Manufacturing Policy 2025.
  • Discussions with Railway Minister Ashwini Vaishnaw and the next-generation India-Myanmar-Thailand highway plan seek to expand rail logistics and link Assam to Southeast Asian markets for export growth.