Assam Budget 2026–27: Assam Unveils ₹1,164 Crore Semiconductor Ecosystem with Japan

Assam Budget 2026–27 announces a ₹1,164 crore JICA-backed semiconductor ecosystem to boost manufacturing, skills, MSMEs and innovation.

By Indrani Priyadarshini

on July 13, 2026

Assam has taken a significant step towards becoming a key player in India’s semiconductor industry with the announcement of a ₹1,164-crore partnership with the Japan International Cooperation Agency (JICA). Announced as part of the Assam Budget 2026–27, the initiative aims to create a strong manufacturing and innovation ecosystem that supports the state’s growing ambitions in the semiconductor sector.

Five-Year A-SEMI project

The five-year programme, named Assam Semiconductor Ecosystem on Manufacturing and Innovation (A-SEMI), is designed to strengthen the state’s industrial capabilities by developing skilled talent, supporting local manufacturing and encouraging technology partnerships. The initiative is expected to help Assam build an integrated ecosystem that can contribute to India’s expanding semiconductor supply chain.

Read More | Assam-Japan Partnership: Semiconductor Manufacturing and Clean Energy Investment to be Boosted

A major focus of the A-SEMI project is strengthening micro, small and medium enterprises (MSMEs). The government plans to help local businesses develop the capability to manufacture critical components required by the semiconductor industry. By connecting regional suppliers with larger manufacturing facilities, the programme aims to create new business opportunities while improving domestic supply chain resilience.

Collaboration Between IIT and Japanese Investors

The initiative also places strong emphasis on research and talent development. Assam will promote academic collaboration between IIT Guwahati and Japanese companies, including TOHO KOKI, to advance semiconductor research, technology innovation and industry-oriented skill development. These partnerships are expected to provide students and researchers with greater exposure to global manufacturing practices and emerging semiconductor technologies.

Read More | Dholera is set to become the world’s largest data centre city: Gujarat’s Dy CM Sanghavi

The new ecosystem will complement the ₹27,000-crore Tata Electronics semiconductor assembly and test (OSAT) facility currently being developed in Jagiroad. The state government expects the A-SEMI programme to support the facility by creating a skilled workforce, encouraging supplier development and attracting additional investments across the semiconductor value chain.

Recognising the industry’s demand for highly specialised talent, Assam will also expand Japanese language training alongside technical skill development programmes. These initiatives are intended to prepare local professionals for precision manufacturing environments while strengthening collaboration with Japanese technology partners.

News Image