Assam is positioning itself as India’s emerging frontier for semiconductor manufacturing and exports, banking on the soon-to-be-operational India–Myanmar–Thailand (IMT) Trilateral Highway.
The strategic connectivity corridor, expected to be functional within the next three years, promises to redefine the region’s economic outlook by linking Northeast India directly to Southeast Asia’s booming electronics markets. Officials from the state government have confirmed that the final stretch of the IMT Highway, which had been delayed due to instability in certain areas of Myanmar, is now progressing. With diplomatic and logistical bottlenecks easing, Assam anticipates a surge in cross-border trade, specifically in high-value electronic components and semiconductors.
Once operational, the highway will offer a direct land route to Southeast Asia, significantly reducing logistical costs for exporters and unlocking access to a diverse range of buyers and technology firms. This could shift the industrial landscape of Assam, traditionally overlooked in India’s high-tech narrative, into a dynamic hub for greenfield semiconductor development. The state’s leadership is actively courting global and domestic technology firms with a bold incentive package. A cumulative subsidy pool of ₹25,000 crore (approximately USD 3 billion) has been earmarked to attract semiconductor fabricators and electronics manufacturers. The subsidies, structured to mirror and supplement central government incentives, could provide up to 60 percent of the central subsidy value as an additional top-up from Assam.
Officials emphasised that these incentives are ready for disbursement, aiming to cut through bureaucratic delays. “We can process and issue these subsidies within a week of central approval, making it one of the fastest policy implementations in the country for this sector,” a senior official confirmed. While states like Tamil Nadu, Karnataka, and Gujarat currently dominate India’s chip and electronics production, Assam is leveraging its unique geographical advantage and lower operational costs to pitch itself as the ideal destination for Southeast Asia-facing operations.
Adding momentum to this vision is the nearly completed chip testing and packaging facility being developed at Jagiroad, about 55 kilometres from Guwahati. The facility is expected to test up to 48 million chips daily. Experts in semiconductor logistics noted that proximity to suppliers is critical for cost efficiency, as testing operations yield slim margins and cannot afford high freight overheads. “Testing plants require a surrounding ecosystem—everything from chip substrates to gases and power has to be nearby. Assam has already seen several ancillary firms express interest in setting up base near Jagiroad, particularly in green energy-powered operations,” said an industry consultant involved in India’s national semiconductor roadmap.
To support these developments, multiple industrial conglomerates have already pledged significant investments in Assam. In the past quarter alone, the state secured over ₹1.5 lakh crore in investment announcements, spanning mobile phone assembly, artificial intelligence applications, telecom infrastructure, and renewable energy. The government’s long-term pitch, however, extends beyond investments and subsidies. Assam aims to create a circular technology economy that sustains itself through innovation, job creation, and localised supply chains. Experts suggest that the semiconductor sector, due to its labour-intensive ancillary services, could become a key employment generator for youth in the region, particularly if gender-neutral and skill-oriented recruitment policies are embedded from the outset.
“There is an opportunity to reimagine tech-led growth in a way that’s decentralised, equitable, and environmentally sustainable. Assam’s entry into semiconductors should focus not only on exports and revenue but also on inclusive industrialisation,” said a policy analyst from a Delhi-based think tank on green economic development. For sustainable industrial development, Assam will need to address gaps in urban infrastructure and ensure its environmental frameworks align with the zero net carbon goals it has echoed in regional plans. Integrated planning for energy, mobility, and housing around new industrial zones will be crucial to avoid replicating the urban sprawl seen in legacy tech hubs.
Despite the challenges, the outlook appears increasingly optimistic. With geopolitical focus shifting toward resilient and decentralised supply chains, the IMT Highway could turn Assam into a linchpin of India’s Act East Policy and global semiconductor strategy. As the chip testing plant nears completion and interest from Southeast Asian firms grows, Assam stands on the cusp of transforming from a peripheral player into a key node in India’s tech infrastructure, backed by ambitious policy, strategic geography, and a green industrial vision.
Assam eyes chip boom with new highway access
