Guwahati, July 19: The Assam Government is preparing to integrate local micro, small and medium enterprises (MSMEs) into the semiconductor manufacturing supply chain as the state’s upcoming semiconductor facility moves closer to becoming operational, Chief Minister Himanta Biswa Sarma said on Saturday.
Sharing the government’s vision in a post on X, Sarma said the focus will be on ensuring that entrepreneurs from Assam become part of the wider semiconductor ecosystem rather than limiting their role to indirect economic benefits.
"As the semiconductor facility begins operations in the coming months, our focus is on integrating local entrepreneurs into its ecosystem, enabling them to become part of the broader semiconductor supply chain," the Chief Minister posted.
As the semiconductor facility begins operations in the coming months, our focus is on integrating local entrepreneurs into its ecosystem, enabling them to become part of the broader semiconductor supply chain.#AssamLeads pic.twitter.com/JuUzhiXmbe
— Himanta Biswa Sarma (@himantabiswa) July 19, 2026
Elaborating on the initiative in an accompanying video message, Sarma said semiconductor manufacturing requires a wide range of industrial tools, components and support services that can be produced by local enterprises. He said the government intends to encourage MSMEs across Assam to manufacture these products instead of relying on supplies from outside the state.
According to the Chief Minister, entrepreneurs will be supported through seed capital and other government initiatives to help establish businesses capable of supplying equipment and materials required by the semiconductor industry. He said the objective is to create a network of ancillary industries that will grow alongside the semiconductor manufacturing facility.
Sarma also said the government wants Assam-based transport operators, logistics providers and other service enterprises to participate in the project. Services such as freight transportation, vehicle operations and industrial support, he said, should increasingly be handled by local businesses, allowing the economic benefits of the project to remain within the state.
Explaining the concept, the Chief Minister compared the semiconductor industry with the automobile sector, where a manufacturing plant is supported by numerous ancillary industries producing components and accessories. He said a similar model is being planned for Assam so that local entrepreneurs can manufacture products required by semiconductor units and become long-term partners in the industrial value chain.
Alongside industrial development, the government is also focusing on creating a skilled workforce for the sector. Sarma said the state is working with the Japan International Cooperation Agency (JICA), the Indian Institute of Technology (IIT) Guwahati and other educational institutions to strengthen training and human resource development for semiconductor-related industries.
He further stated that the government has announced an investment of ₹1,200 crore to develop the supporting ecosystem for the semiconductor sector. The initiative, he said, is intended to promote skill development, entrepreneurship and industrial infrastructure while enabling local businesses to meet the requirements of advanced manufacturing.
Sarma added that work on the ecosystem development programme has already made significant progress. He expressed confidence that integrating Assam’s MSMEs into the semiconductor supply chain would generate employment, encourage entrepreneurship and strengthen the state’s industrial base as the manufacturing facility begins operations in the coming months.
The semiconductor project is expected to be among Assam’s major industrial initiatives, with the state government aiming to create opportunities for local enterprises across manufacturing, logistics, engineering services and other allied sectors while expanding Assam’s presence in India’s growing semiconductor industry.
