Assam is an emerging semiconductor manufacturing base and the largest state in North East India. The Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) is a semiconductor unit in Morigaon, Assam, with a capacity of 48 million chips per day, at a cost of Rs 27,000 crore. The Tata Group hopes that commercial production of the two plant will start in 2026.

The Assam region boasts ample high-quality water resources suitable for semiconductor operations, along with a pollution-free environment conducive to the expat workers needed for the initial phases of semiconductor projects. This strategic combination of resources and support underscores Assam's potential to emerge as a leading hub for semiconductor manufacturing in India.

In March 2024, the prime minister laid the foundation stone for Tata Group's INR 27,000-crore (US$ 3,237.89) indigenous 'Semiconductor Assembly and Test Facility' in Jagiroad. The facility is expected to commence partial operations by 2025 and be capable of producing 48 million chips daily.

Despite Assam's significantly lower state-level GDP compared to states like Gujarat, Uttar Pradesh and Orissa, it was chosen for its proactive semiconductor policy, which rivals those of more economically advanced states. Assam's prioritization of semiconductors is expected to set a precedent for smaller states with lower GDP in India.