Tuesday, May 13, 2025
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Meghalaya should chip in to India’s Silicon story

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By K N Kumar

The winds of change are sweeping across Northeast India, and at the heart of this transformation is a bold move by the Tata Group: a ₹27,000 crore semi-conductor manufacturing facility taking shape in Jagiroad, Assam. This isn’t just the region’s largest private sector investment ever- it’s a signal to the nation and the world that the Northeast is ready to be a player in India’s high-tech future. For neighbouring Meghalaya, this development is both a wake-up call and a golden opportunity, one that could forever alter the state’s economic and social landscape.
To appreciate the magnitude of what’s happening, let’s first talk about why semiconductors matter so much. These tiny chips are the unsung heroes of our digital age. They power everything from the smartphones in our pockets to the cars we drive, the medical equipment that saves lives, and the computers that run our businesses. India, despite its prowess in software and IT, has long relied on importing these essential components. That reliance has been a vulnerability that became painfully clear when global supply chains faltered during the pandemic and geopolitical tensions. Suddenly, factories making cars, phones, and appliances faced crippling shortages. It was a wake-up call: India needs to make its own chips, not just for economic growth, but for national security and technological independence.
Now, with the country’s semiconductor market expected to double to a staggering $108 billion by 2030, the stakes are higher than ever. If India can meet even part of this demand at home, it means billions saved on imports, thousands of high-value jobs, and a seat at the global technology table. That’s why Tata’s move into Assam is such a game-changer, not just for the company, but for the entire region. Imagine the ripple effects. The new facility is expected to create more than 25,000 jobs, both directly and indirectly. And these aren’t just positions for engineers and techies. There will be opportunities for support staff, logistics workers, administrative teams, and a whole ecosystem of allied industries. Local businesses – from transporters to hotels and restaurants – stand to benefit from the activity. Suppliers and ancillary industries will be drawn, creating a cluster effect that could turn the state into a bona-fide electronics hub. And with all this activity comes better roads, more reliable power, improved water management, and a boost to connectivity- improvements that will lift up communities far beyond the factory gates.
But perhaps the most exciting change is what this means for the region’s youth. For decades, talented young people from the Northeast have felt compelled to leave home in search of better opportunities. Now, with world-class jobs and cutting-edge technology arriving at their doorstep, many may choose to stay and help drive their home states forward.
For Meghalaya, the message is clear: the time to act is now. The Tata investment in Assam is both an inspiration and a challenge. Meghalaya has a chance to ride this wave of technological progress, but it will require vision, planning, and swift action. The first step is to articulate a clear, forward-looking semi-conductor policy that aligns with the national Semicon India programme. The state needs to identify and reserve land for high-tech industrial parks, making sure these sites have reliable power, water, and easy access for workers and materials.
But it’s not just about infrastructure. The real key is people. Meghalaya’s technical institutes should start offering specialized courses in chip design, electronics manufacturing, and the crucial processes of assembly, testing, marking, and packaging. Imagine students in Shillong or Tura learning the skills that global tech companies are desperate for, right in their backyard. Partnerships with industry can provide internships, hands-on training, and exposure to the latest technologies, ensuring that Meghalaya’s youth are ready for the jobs of tomorrow. On my part, I can tie up with semi-conductor industries based out of Hyderabad, a major technology hub for the semi-conductor industry as of now. Why not create a task force with officials from industry, academia, and government? Why can’t we launch a Meghalaya Semiconductor Mission??
Of course, attracting big investments means making it easy for companies to do business. Meghalaya should roll out the red carpet: capital subsidies, tax breaks, and a fast-track clearance system that cuts through red tape. The state has unique strengths- its cost-effectiveness, improving connectivity, large numbers of English-speaking youth, and a key resource base for development. By marketing these advantages at investor summits and tech expos, Meghalaya can put itself on the map for semi-conductor firms looking for their next big opportunity.
But even the best plans can be derailed by bureaucracy. (A bit of self-flagellation is okay, once in a while.) That’s why the government needs to set up a single-window clearance system for semi-conductor projects, supported by a dedicated team. This task force can monitor progress, solve problems as they arise, and make sure projects stay on track. Public-private partnerships will be crucial for building training centres, research labs, and the physical infrastructure needed to support a high-tech industry.
So, what does a winning blueprint look like for Meghalaya? (1) It starts with a strong policy and a clear vision. (2) Next comes investing in education and training to build a workforce that’s ready for the semiconductor revolution. (3) The state should identify and prepare industrial sites with reliable utilities, then (4) actively court investors by showcasing its strengths, and (5) encourage local businesses, especially micro, small, and medium enterprises that become suppliers for semiconductor units. And by emphasizing sustainability, such as using green energy in new industrial clusters, Meghalaya can position itself as a modern, environmentally friendly destination for tech investment.
Collaboration will be key. By partnering with Assam and other Northeastern states, Meghalaya can help create a regional semi-conductor corridor, sharing resources, expertise, and best practices. The state doesn’t need to jump straight into full-scale chip fabrication, which is capital-intensive and complex. Instead, it can focus on niche areas like assembly, testing, and chip design segments that are easier to enter and still offer huge opportunities for growth. And by tapping into central government schemes like the ₹76,000 crore Semicon India programme, Meghalaya can access the funding and technical support it needs to get started.
The Tata semi-conductor facility in Assam is more than just a factory- it’s a symbol of what’s possible when vision, investment, and determination come together. For Meghalaya, this is a moment to dream big and act boldly. The journey won’t be easy. It will take leadership, smart policies, and the collective effort of government, industry, educators, and communities. But the rewards – a vibrant economy, world-class jobs, and a future-proofed workforce- are well worth the effort.
Meghalaya has a unique chance to seize the moment and shape its destiny. The time to act is now, and the future is waiting to be built – one chip at a time.
(The author is former member of the IAS)

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