US Academicians Hail Assam's Semiconductor Plant, Says It Will Boost Economic, Technological Growth in Northeast

Guwahati: Assam government in partnership with the Tata group is setting up a semiconductor manufacturing plant in Jagiroad. The Rs 27,000 crore project will showcase Assam as a major player in sophisticated semiconductors. It will be crucial for Assam's economic growth, technological advancement, and job creation, particularly in research, engineering, logistics, and support services. It can attract domestic and foreign investments, boost GDP, and position Assam as a critical player in India's electronics supply chain. 

Localization of semiconductor production has potential to significantly reduce import dependency, enhancing the self-sufficiency and resilience of local electronics and tech industries against global supply chain disruptions. 

A thriving semiconductor industry will not only boost India’s defense and technology independence but also play a key role in advancing renewable energy technologies and electric vehicles. 

Paramananda Saikia (Senior Scientist, Millipore Sigma, Boston) and Santanu Borah (Professor of Management, University of North Alabama, USA) during an exclusive Q&A session with Priyanka Chakravarty of Business North East explains the impact of local semiconductor production and its implications for Assam and the broader economy.

Here are the excerpts:

Interview:Q&A

BNE: How could awareness campaigns on the significance and applications of semiconductors benefit your target audience?

Parmananda Saikia (PS): We need informative content to portray how semiconductors improve efficiency and reduce costs, highlighting their impact on day-to-day life, like in smartphones. Digital resources - easy-to-understand videos and content on social media platforms such as Instagram and LinkedIn can engage consumers effectively. Collaboration with local organizations, such as Chambers of Commerce, would amplify the message and reach the crowd. Real-world demonstrations at exhibitions and fairs will provide hands-on experience, while integrating semiconductors into educational syllabi ensuring long-term awareness. Also, a feedback mechanism will allow businesses to assess and adapt their outreach strategies.

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BNE: What job opportunities could the semiconductor sector create in Assam?    

Santanu Borah: The global shortage of skilled personnel is a significant issue, particularly in industries like semiconductors. Taiwan Semiconductor Manufacturing Company Limited plans to establish two plants in Arizona, but the challenge lies in attracting workers with a global skill set. Training these workers will enable them to compete in global markets, including the US, Taiwan, Japan, and Europe. According to a Hindustan Times report, 27000 jobs are to be generated from the semiconductor project in Assam. Supporting 27000 workers in Assam requires a collaborative effort between various industries. Universities have recently started training workers, and Tata has taken a thousand workers to various Indian factories to familiarize them with the challenges of working in the semiconductor industry. These workers can also become trainers and train others. The 27000 workers will need homes, hospitals, banks, and social infrastructure, including safety and security community spaces. The success of these plants will require collaboration between other industries and the development of infrastructure, such as the Jamshedhpur Tata Plant.

BNE: How can partnerships with educational institutions and industry leaders be fostered to promote semiconductor education?
    
Santanu Borah: The US and India face challenges in increasing the supply of engineers and scientists due to educational institutions and a large population. The US needs 13,400 Computer Scientists and 5000 PhDs between 2023 and 2030, while India faces 1.4 million unfulfilled jobs due to its large population and skill set preference. In India, only 10% of jobs are in the formal sector, and women are underrepresented in high-paying jobs. The informal health sector lacks facilities, and women are not represented in high-paying jobs. Degree-giving is also a concern, with 28.7% of graduates not having jobs and unemployment being only 3.2% for those below primary education.

The issue of degree-giving is also a concern, as China has a 66% working-age population, while India has a 55% working-age population. 28.7% of graduates do not have jobs, and unemployment is only 3.2% for those below primary education. Assam and Northeast have significant responsibilities in addressing these issues as a national problem.

BNE: How can the semiconductor industry boost Assam's local economy?

Santanu Borah: If you see the construction of houses, roads, and medical facilities are completely separate industries. It will have to be out there in order to support this industry. If you are talking about banking services, educational institutes that will serve this area. 20,000 people moving into one area simply cannot survive in a vacuum. A lot of these allied and complimentary services will have to be there.

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BNE: What type of infrastructure is required to support the semiconductor industry in Assam?

Santanu Borah: Utilities, for example, power, reliable and stable supply of electricity and water are crucial. Water should not necessarily be a problem.  One of the reasons why companies moved to the South was that power was guaranteed to them. Those are the types of commitments that have to be made and delivered. Next is transportation (logistics), airports, and roadways are some of the necessities.Workforces like engineers, technicians, and researchers, supply chain, network are essential. For example, Toyota is headquartered in Nogoya City, Japan. All of their suppliers are located 10-20 minutes from the main factory. 70 percent of the parts going into Toyota cars come from these factories. Regulatory industry has to be adjusted in terms of making it sure to be easy for companies to come to Assam and do business in Assam and the northeast. 

BNE: How can the integration of semiconductor technology influence Assam’s industrial and manufacturing sectors? 

Santanu Borah: What is the skill set that we need to be successful in the semiconductor industry? If we can get our workforce to be ready to compete and successful in the semiconductor industry, all of those other industries that are closely aligned with the semiconductor industry like cell phones, you can use the template over and over again for training our workforce so that they can be competitive. They can understand what it takes to compete in industries like this.