Assam bets big on $3 bn chip dream with India-Myanmar-Thailand highway in sight

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Assam is banking on the India-Myanmar-Thailand (IMT) highway to emerge as a strategic export corridor and attract Southeast Asian investments in its burgeoning semiconductor ecosystem. Chief Minister Himanta Biswa Sarma, in an interview with Mint, said the tri-nation highway - expected to be operational within the next three years - could transform Assam into a gateway for exporting India-made semiconductor chips and for setting up electronics factories in the state.

“The tri-nation highway will be ready for operations within the next three years, as certain points of stress in the Myanmar region ease out,” Sarma said, adding that this will directly connect Assam to Southeast Asia, unlocking opportunities for both exports and investments.

While states like Karnataka, Tamil Nadu and Gujarat boast more mature electronics manufacturing ecosystems, Assam is positioning itself as a cost-effective greenfield destination, backed by a Rs 25,000 crore ($3 billion) subsidy package for semiconductor and electronics component makers. This financial incentive, Sarma emphasised to Mint, is ready to be disbursed swiftly - within a week of central government clearance.

As per Mint, Sarma’s push is part of Assam’s broader vision to create a tech-driven circular economy, with industrialisation and job creation at its core. The state has already attracted significant investments this year, including Rs 30,000 crore from the Tata Group and mega-investments by Gautam Adani and Mukesh Ambani worth Rs 50,000 crore and Rs 75,000 crore, respectively, across sectors such as AI, telecom, green energy and infrastructure.

A key anchor for Assam’s semiconductor ambitions is the Tata chip testing plant coming up in Jagiroad, near Guwahati. The plant, expected to produce 48 million chips daily, is seen as a catalyst for the region’s industrial development.

“In the long run, we hope to create mass-scale employment… this will lead to industrialisation and development at scale,” he said, as quoted by Mint.

The chief minister is currently on an outreach visit to Delhi, engaging with key stakeholders from the electronics and semiconductor sectors, as per Mint. He also plans to extend this engagement to Mumbai, Bengaluru and Chennai to generate industry interest and build strategic partnerships.