Assam Chief Minister Himanta Biswa Sarma has revealed that the Tata Group's semiconductor investment has fundamentally transformed the state's position as a global investment destination. Speaking at the World Economic Forum 2026 in Davos, Sarma described the investment as the highest in post-Independence Assam and announced ongoing discussions for additional Tata Power investments in electronics within the next one to two years.

Investment Impact and Scale

The Tata semiconductor facility, expected to be operational by the end of this year, has acted as a catalyst for unprecedented investment flows into Assam. According to Sarma, the project has changed long-held perceptions about the state's investment potential.

"Before Tata took that bold decision, nobody thought Assam was a place where one could invest," Sarma stated. "After Tata came in, it opened the eyes of other investors that Assam is an investment destination."

Major Projects Already Underway

The momentum created by the Tata investment has translated into multiple large-scale industrial projects across various sectors:

"A lot of things happened very quickly after the Tata investment. It created a buzz," Sarma emphasized, highlighting the rapid execution of committed projects.

Building a Semiconductor Ecosystem

The Assam government's strategy extends beyond the single semiconductor facility to create a comprehensive electronics and semiconductor ecosystem. The state has acquired land for a dedicated industrial cluster named Ratan Tata Electronics City, where additional semiconductor and electronics facilities are expected to be established.

"We do not see the semiconductor investment in isolation. Our larger game plan is to set up an electronics and semiconductor ecosystem around the Tata facility," Sarma explained.

Tata Sons Chairman N. Chandrasekaran has made a public commitment to bring an equal quantum of investment to Assam after the semiconductor facility becomes operational, with discussions for electronics sector investment expected to conclude within one to two years.

Global Supply Chain Integration

Sarma highlighted Tata's role in connecting Assam with global companies and institutions that form part of the semiconductor value chain. The collaborative approach recognizes that semiconductor facilities require strong ecosystem support to operate effectively.

"Tata is helping us interact with every institute or every company that is part of the ecosystem, because a semiconductor asset cannot stay in isolation," he noted.

Strategic Vision for Northeast India

With semiconductors and electronics as anchor sectors, Assam is positioning itself as an emerging industrial hub in India's northeast region. The state's approach leverages marquee investments to build long-term manufacturing depth and integrate into global supply chains, using globally recognized anchor investors to drive comprehensive industrial ecosystems.

Union Electronics and IT Minister Ashwini Vaishnaw has confirmed that the upcoming Dholera semiconductor facility will incorporate advanced lithographic tools from Dutch technology leader ASML. The announcement came during Vaishnaw's official visit to ASML's headquarters in Veldhoven, Netherlands, where he gained insights into the technology that will be integral to India's ambitious chip manufacturing project.

Major Investment and Government Support

The Dholera semiconductor project represents one of India's largest technology investments, with key financial backing from multiple sources:

This substantial financial commitment demonstrates the significant backing for India's burgeoning semiconductor industry and reflects the government's strategic priority to develop domestic chip manufacturing capabilities.

ASML's Critical Role in Chip Manufacturing

ASML stands as a global leader in providing lithographic tools essential for semiconductor production. "Our fab in Dholera will be using the ASML equipment. So, I have come to visit here and understand their technology," Vaishnaw explained during his Netherlands visit. Lithography involves the precise process of printing circuits on wafers, representing one of the most crucial and intricate steps in semiconductor manufacturing.

The partnership with ASML marks a pivotal moment for India's semiconductor ambitions, as the country gains access to cutting-edge technology that powers the global chip industry. This collaboration positions India to compete effectively in the international semiconductor market.

Strategic Implications for India's Tech Sector

The minister emphasized that ASML's involvement signals growing international confidence in India's semiconductor potential. Many global equipment manufacturers are now considering establishing operations in India, driven by several key factors:

• Strong design capabilities within the Indian technology sector
• Vast pool of skilled technical talent
• Consistent policy framework under Prime Minister Narendra Modi's leadership
• Growing domestic and regional demand for semiconductor products

ASML's decision to expand its presence in India, announced last year, aligns perfectly with the country's semiconductor development trajectory and reinforces India's emergence as a significant player in global technology manufacturing.

Future Prospects and Industry Impact

The Dholera project represents more than just a manufacturing facility—it symbolizes India's strategic entry into advanced semiconductor production. By leveraging ASML's sophisticated lithographic technology, India aims to establish itself as a reliable alternative in the global semiconductor supply chain.

This development is expected to attract additional international players to India's semiconductor ecosystem, creating a multiplier effect that could accelerate the country's technological capabilities and economic growth. The collaboration between Tata Group and ASML demonstrates how strategic partnerships with global technology leaders can help emerging markets leapfrog into advanced manufacturing sectors.