India's Semiconductor Industry Set for Major Capacity Expansion
India's semiconductor ecosystem is poised to achieve a significant milestone, with production capacity projected to reach 75-80 million chips per day as newly announced facilities begin operations by the end of this year or early next year. This development represents a transformative moment for the country's electronics manufacturing sector.
Industry Leader Outlines Ambitious Timeline
According to Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) and SEMI India, this substantial capacity increase will emerge from several semiconductor projects expected to commence production in phases. "Together, the companies that have announced plants could bring capacity to around 75-80 million chips per day by the end of the year or early next year, depending on their timelines," Chandak stated in an interview with ANI.
Chandak emphasized that such output would mark a major advancement for India's semiconductor industry. While a portion of this production will address domestic demand, a significant share is anticipated for export markets. This expansion could fundamentally alter India's position within the global semiconductor value chain once these facilities become fully operational.
Focus on Assembly and Testing Operations
The near-term activity in India's semiconductor sector will primarily concentrate on chip assembly and testing rather than wafer manufacturing. For instance, the recently inaugurated Micron Technology facility functions as an ATMP (Assembly, Test, Mark and Pack) plant, which is also described as a smart packaging unit.
Other prominent projects currently under development include those by Tata Electronics, Kaynes Technology, and CG Power and Industrial Solutions. These facilities will operate as OSAT (Outsourced Semiconductor Assembly and Test) units, performing similar assembly and testing functions that are crucial to semiconductor production.
Diverse Applications and Industry Impact
The Micron plant will specifically produce memory chips such as DRAM, NAND, and SSD components, which find applications across multiple industries. Demand for these memory chips has surged with the proliferation of AI workloads, while sectors including smartphones, laptops, and automotive continue to experience supply constraints.
Chips assembled and tested in India are expected to support various applications, including AI systems, automobiles, laptops, and smartphones. Initially, most of these chips will fall within the 14-nanometer to 28-nanometer category, while the wafers themselves will continue to be sourced from international suppliers.
Key Projects Driving Capacity Growth
Among the upcoming projects, Kaynes Technology is expected to assemble advanced power modules, including IGBTs and other power devices, while also manufacturing printed circuit boards used in electronic products. These components will serve critical sectors such as automotive, industrial, consumer electronics, and defense.
Tata Electronics is preparing to operate an OSAT facility in Jagiroad, Assam, which will produce power devices and multi-chip modules primarily for industrial and automotive applications. According to Chandak, this facility alone could achieve a capacity exceeding 50 million chips per day.
CG Power's semiconductor project will focus on integrated circuits used in industrial and automotive applications. This initiative will be implemented in two phases and could eventually reach a capacity of approximately 15 million chips per day once fully operational.
Strengthening Global Semiconductor Presence
With multiple projects progressing simultaneously, Chandak expressed confidence that India is positioned to significantly strengthen its role in the global semiconductor ecosystem in the coming years. The expansion of assembly and testing capabilities represents a strategic entry point into the complex semiconductor value chain.
As these facilities come online, India's semiconductor production capacity will not only address domestic requirements but also establish the country as a competitive player in international semiconductor markets. This development aligns with broader national initiatives to enhance electronics manufacturing and technological self-reliance.
