Tuesday, May 20, 2025
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A Game Changer for Meghalaya’s Economy

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By Toki Blah

At the outset I want readers to understand two basic issues that this write-up will cover. First is the prime desire of the indigenous tribals of Meghalaya to develop, while also being masters and in control of their land, its resources and in particular its economy. Second, it shall try and analyse the latest opportunity to come our way in achieving the first primary desire mentioned above. The greatest fear we have, and this is drummed into our psyche since childhood, is the fear of one day becoming “hewers of wood and carriers of water,” in our own land. Well the way we are going about fiddling and fooling around with our resources, both human and natural, might well make that sad day come about earlier than desired. So, time to change that. Time to rid ourselves of the demoralising conspiracy theory that we are underdogs, constantly under threat of losing ownership of our land. We have more than adequate laws to protect our tribal interests. That we don’t use them is a different story. However the time has come for a more aggressive broadband vision of the future. Time has arrived to become more positive and futuristic about ourselves; to instill hope, aspiration and self confidence in our youngsters; to hone their survival skills; manage their own land; become masters over their own destinies. The job of our generation is to facilitate the process. Time to accept we have only borrowed our children’s tomorrow for our today. Not the other way round.
At this juncture I refer to K N Kumar’s article “ Meghalaya should chip in to India’s Silicon story” (ST May 12, 2025).It’s something that all who desire Meghalaya’s economic development must read, especially our politicians. It speaks about the Tata Group’s latest semi-conductor investment of Rs 27,000 crores at Jagiroad Assam that holds promise to provide tens of thousands of jobs, directly and indirectly , to boost up Assam’s economy. The article questions as to why Meghalaya should not be part of such opportunities? I endorse his question: Why? Why shouldn’t Meghalaya and its people also benefit the same way, especially with jobs for our unemployed youth? We have 9,44,350 unemployed youth, aged between 15-29 years, representing 85% of the total 11.11 lakh unemployed persons in the state (GoM figures). Government jobs have dried up so there’s no scope of employment there. Thousands line up for one single government clerical vacancy. So what livelihood prospects does the state offer the youth? Hardly anything.
Desperate youths after years of investing in education end up as daily wage labourers, taxi drivers, rapido riders, sewing and embroidery entrepreneurs, jadoh stall owners or as street vendors and hawkers. This is the urban employment scene. In the rural areas it’s even worse. There our educated youth simply disappear into the cracks of ignominy. It’s pathetic if not so downright tragic! Meanwhile those who manage to take up higher studies in specific technical courses cannot return home because of lack of employment opportunities matching their talents. Such highly qualified youth have no option but to leave Meghalaya and seek employment elsewhere. A brain drain of our brightest is taking place. This cannot go on. We need to put a stop to this sorry state of affairs and the only way to do this is by improving our economy. Can we? Let’s try and find out, shall we.
For starters let’s take the introduction and establishment of a semi-conductor assembling industry in Meghalaya as a game changer for our Economy. In Assam the semi-conductor industry came about because of a dynamic and far-sighted Chief Minister. The political will was there. So does Meghalaya possess such political will and perception? My belief is yes, as Meghalaya can match this through our own Chief Minister who is technology savvy and quite well versed with the intricacies of the electronic world. The corollary to this positive political quality is, if other corporate bodies, desiring to set up similar microchip and semiconductor units were to approach Meghalaya, are we institutionally prepared to accept such an offer? Again I say, ‘why not!’ We have the Meghalaya Industrial Development Corporation (MIDC) that was established specifically for such circumstances. The MIDC can set up a semi-conductor industrial park to accommodate the needs of this particular industry. Tribal ownership over land will not be compromised as it will remain and owned by an entity of this tribal state and not handed over to outside corporations. The fear of alienation of tribal land is thus nullified. Within the Park the MIDC should be made to address other issues of ‘Tribal Interest,’ such as maximum employment opportunities, at all levels, for locals. This is important and should form the basis for any tie-up with outside investors. Government should also step in to provide other infrastructural amenities such as roads, drinking water, housing and electricity (recent announcement of existence of surplus power by the Power Minister is most assuring).
The question of skilled workers will however definitely arise. Do we have such workers? Doubtful at present but once there is political will, this handicap can easily be overcome. One is given to understand that a class 12 pass (regardless of stream), can be given adequate training to fit in as a skilled worker for the unit. We can develop partnerships with local and national academic institutions (IIT Guwahati, NIELIT, and NITs) for workforce training, diploma, and certification programs tailored to semi-conductor manufacturing and ancillary services. A training programme for Master trainers to train people in Meghalaya itself can also be thought of. Private Universities of the state should be keen for such a role. The semi-conductor plant itself can accommodate thousands of workers. Of significance however are the employment spin-offs from ancillary units that offer far greater potential for massive self employment opportunities. To create a robust and self-sustaining semiconductor ecosystem, a wide range of ancillary (supporting) units will be essential. These units will not only supply critical inputs and services to the main facility but also drive job creation and regional industrialization. Listed below are some of the more significant ones to support the Tata Semiconductor Unit at Jagiroad, Assam.
Key Ancillary Units needed
The following ancillary units, owned and run by locals, are expected to come up around the Jagiroad facility. The same should apply for Meghalaya.
1. Specialty Chemicals and Gases Suppliers to provide ultra-pure chemicals (acids, solvents, etchants) and process gases (nitrogen, argon, hydrogen, etc.) essential for chip assembly, packaging, and testing.
2. Cleanroom and Environmental Control Services to provide Design, construction, and maintenance of cleanrooms and controlled environments to ensure contamination-free manufacturing.
3. Precision Equipment and Tooling Suppliers to (a) Supply specialized machinery for assembly, wire bonding, flip-chip packaging, testing, and inspection (including automated optical inspection and X-ray machines).(b) Maintenance, calibration, and spare parts services for these machines.
4. Packaging Materials Manufacturers to produce lead frames, substrates, ceramic and organic packages, plastic encapsulation materials, and advanced packaging solutions (such as Integrated Systems Packaging).
5. Electronic Components and Consumables to supply solder balls, bonding wires, adhesives, tapes, and other consumables required for chip packaging and assembly.
6. Logistics and Supply Chain Services – Warehousing, specialized transport (including temperature and humidity-controlled logistics), and inventory management for sensitive materials and finished chips.
7. Waste Management and Recycling Services for management and treatment of hazardous chemical waste, water recycling, and recovery of precious metals from process scrap.
8. Testing and Quality Assurance Services for third-party testing labs for reliability, failure analysis, and certification of chips and packaging.
9. Industrial Gases and Utilities Providers for supplying high-purity industrial gases, de-ionized water, and uninterrupted power supply (power backup systems).
10. Engineering Support and Facility Maintenance to provide mechanical, electrical, and civil engineering services for plant infrastructure, utilities, and facility upkeep.
11. IT and Automation Solution Providers – Companies offering process automation, data analytics, ERP, MES (Manufacturing Execution Systems), and cyber-security solutions.
12. Transport and housing – People will need transport to and from work; products will need to be transported ; people will require accommodation. These are requirements locals can benefit from.
Vendor and Ecosystem Development
Tata Electronics has already signed MoUs with vendors from Singapore, Malaysia, and Japan for equipment, engineering, and support services, and is expected to build a network of 1,000 suppliers and partners as the ecosystem matures. This will include both global and local ancillary units, fostering technology transfer and skill development. The same is expected of a Meghalaya unit. In Assam the government is already considering incentive schemes (such as subsidies and sops) to attract ancillary units, especially those providing critical inputs like chemicals, gases, and equipment, to co-locate near major semi-conductor facilities. This too should happen in Meghalaya to provide impetus to self employment units desirous of linking themselves to the main industry.
In conclusion, what is immediately required is an exposure tour, especially by the MIDC together perhaps with high officials of interested private universities of the state, of ongoing semi-conductor assembly units operating outside Meghalaya. We need to know how such an industry can be fitted into the Meghalaya eco-system with special attention to known bottlenecks that need to be circumvented. I had spoken to KN Kumar. He is based in Hyderabad and is willing and ready to act as a resource person and arrange site visits for the team at Hyderabad. Meghalaya is lucky to have a resource person who is well versed with the industrial environment of Meghalaya while also being well acquainted with the industry under discussion. Full advantage of this asset must be made use of. The team should visit and interact with officials of some notable semi-conductor companies in Hyderabad including NXP Semi-conductors, Qualcomm, Micron Technology, Broadcom, Cypress Semi-conductor, and Infineon Technologies, among others. Additionally, Hyderabad is home to semi-conductor startups like MosChip, Apollo Microsystem, and Ananth Technologies.
MIDC can return perhaps with names of companies that are keen in expanding their semi-conductor activities in Meghalaya. Knowing our CM, I have no doubts that he will facilitate such an exposure trip. Now if Southern Indian states can be called Silicon Valley states of India I see no reason why Meghalaya cannot emerge as the Silicon Tableland of the NE.

 

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