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India Poised To Leapfrog China As Global Chip Hub Amid 76 Billion Mission
India’s semiconductor industry is poised for a significant transformation, with the country aiming to move from being a primary consumer of chips to becoming a critical global manufacturing hub. The government’s ₹76,000 crore India Semiconductor Mission (ISM) has been instrumental in driving this growth.
One of the key components of this strategy is the development of assembly, testing, marking, and packaging (ATMP) facilities, also known as outsourced semiconductor assembly and test (OSAT). These facilities are critical to achieving ‘Make in India’ chip independence, as they enable the country to assemble and test chips that power a wide range of devices.
Global giants like Micron Technology and domestic leaders like Tata Electronics are leading the charge in setting up these facilities. Recognizing their role in de-risking global supply chains and bringing high-value manufacturing capabilities onshore, these companies are making substantial investments.
Micron Technology’s facility in Sanand, Gujarat, is one of the first major approvals under the ISM. With a total investment of approximately ₹22,516 crore (~ $2.75 billion), this project will have a capacity to manufacture up to 48 million chips per day, serving multiple sectors including automotive, consumer electronics, and telecom.
Tata Group’s subsidiary, Tata Semiconductor Assembly and Test (TSAT), is setting up a greenfield ATMP facility in Morigaon, Assam. With an investment of approximately ₹27,000 crore, this facility will have a capacity to manufacture up to 48 million chips per day, catering to multiple sectors including automotive, consumer electronics, and telecom.
CG Power and Industrial Solutions, in partnership with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics, is developing an OSAT facility in Sanand, Gujarat. The total investment for this project exceeds ₹7,600 crore. This unit will provide full-spectrum chip assembly, packaging, and testing, including traditional and advanced packages.
Kaynes Semicon, a subsidiary of Kaynes Technology, received cabinet approval for its ATMP unit in Sanand, Gujarat. With an investment of ₹3,307 crore, this unit will have a capacity of over 6 million chips per day, manufacturing chips for high-demand applications such as electric vehicles, industrial electronics, consumer electronics, and mobile phones.
A joint venture between the HCL Group and Foxconn is establishing an OSAT facility near the Jewar Airport in Uttar Pradesh. The project involves the assembly and packaging of display driver chips used in electronic devices such as mobile phones, laptops, and automobiles.
3D Glass Solutions (3DGS) is setting up a vertically integrated advanced packaging and embedded glass substrate unit in Info Valley, Odisha. Backed by an investment of ₹1,943 crore, this unit will introduce the world’s most advanced packaging technology to India, focusing on 3D Heterogeneous Integration (3DHI) modules and glass interposers.
Advanced System in Package Technologies (ASIP), in technical collaboration with South Korea’s APACT, is establishing a chip packaging unit in Andhra Pradesh. With an investment of ₹468 crore, this facility will produce 96 million chip packaging units annually, catering to the needs of the mobile, automotive, and general consumer electronics sectors.
Continental Device India Ltd (CDIL) is undertaking a brownfield expansion of its existing discrete semiconductor manufacturing facility at Mohali, Punjab. The project involves an investment of ₹117 crore, boosting the manufacturing of high-power discrete semiconductor devices like metal oxide semiconductor field-effect transistors (MOSFETs) and insulated gate bipolar transistors (IGBTs).
SicSem Pvt Ltd, in collaboration with the UK-based Clas-SiC Wafer Fab, is setting up an integrated silicon carbide based compound semiconductor fab and ATMP facility in Info Valley, Odisha. With an investment of ₹2,066 crore, this project includes a substantial packaging component, featuring a planned annual packaging capacity of 96 million units.
India’s semiconductor ambitions are growing, but the path forward may not involve billion-dollar fabrication plants, just yet. Industry leaders argue that the country’s most pragmatic entry point is elsewhere. Assembly, testing, and packaging (ATMP) is a step in the value chain, better known globally as outsourced semiconductor assembly and test (OSAT). It offers India an opening to establish its niche in the global ecosystem.
“The natural evolution for most companies has been, first, can I look at localisation of the back end, the OSAT piece?” said one industry expert. “We’re not talking about a huge amount of capital investment here, but rather a strategic move to take control of our own destiny.”
As India prepares to roll out its first domestically packaged chips, ATMP facilities are playing a crucial role in achieving this goal. These facilities will enable the country to assemble and test chips that power a wide range of devices.
Polymatech Electronics and SPEL Semiconductor are also significant players in the domestic OSAT market. Polymatech Electronics has been in the business of manufacturing opto-semiconductor chips, particularly for LED applications, while SPEL Semiconductor is often cited as India’s pioneer and a long-standing domestic OSAT company.
The government’s ₹76,000 crore India Semiconductor Mission (ISM) has been instrumental in driving this growth. With the establishment of ATMP facilities, India is taking a pragmatic approach to achieving ‘Make in India’ chip independence.
As India moves forward on its semiconductor journey, it will be exciting to see how these facilities contribute to the country’s growth and development. With the support of global giants like Micron Technology and domestic leaders like Tata Electronics, India is well-positioned to establish itself as a major player in the semiconductor industry.