India’s Sahasra Semiconductor to Begin Chip Production from September 2023
The business is developing its internal intellectual property, LED driver ICs.According to Sahasra Semiconductor’s chief executive officer Varun Manwani, the Rajasthan-based company would mass-produce its first Made in India memory chips in September or early October. This indicates that Sahasra will manufacture chips in India before Micron.
The business has established its semiconductor assembly, test, and packaging facility in the Bhiwadi district.
It will first package essential memory items like MicroSD cards, chip-on-board, etc., before progressing to more complex packaging of products like internal memory chips.
Currently, Sahasra Semiconductor is eligible for a 25% financial incentive on capital expenditures under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
Sahasra is more of an Outsourced Semiconductor Assembly and Test (OSAT) firm, which means they build and package chips for other companies instead of Micron, which makes its chips.” We will launch chip manufacturing as the first Indian semiconductor business.
Manwani said that the company receives orders from small and medium-sized businesses to create chips for them and is also exploring export potential.
“We completed some trial production in March, and the commercial production will start in September and early October.
The business would invest Rs 600 crore over five to six years in infrastructure development and chip production. Sahasra has committed close to Rs 110 crore to the initial chip assembly and packaging stage.
As internal memory is now a standard feature on all smartphones and other electronic gadgets, the chip is now internal. We will probably use that more modern packaging within the next 18 months. Chips would first be packaged in a rudimentary manner, Manwani continued.
In addition to chip manufacturing, the business is now creating its internal intellectual property, LED driver ICs.
Sahasra intends to apply for the government to cover 50% of the project costs under the semiconductor incentive programme.
“We began building the fab before the semiconductor plan was revealed. To apply for the semiconductor incentive programme, we will first use the investments made under the SPECS plan, Manwani added.
Sahasra’s supply chain partners include Disco Corp, Kulicke, and Soffa. Sahasra obtains tools from nations including Japan, Korea, and Thailand.
Due to increased local demand, Saharsa aims for a Rs 500 crore income from the semiconductor market over the next four to five years.
“We are a specialized player in the OSAT market. We will complete Multiple packages, OSAT ATMP. Manwani noted that the low-hanging fruit that may be targeted rather than opting for really complex solutions will become apparent as we go forward.
In a groundbreaking move for India’s electronics industry, Sahasra Semiconductor has announced its plans to begin semiconductor chip production in September 2023. This monumental step has significant implications for India’s technological aspirations and the global semiconductor supply chain.
Established in [year of establishment, which I need information about as of my last update in 2023], Sahasra Semiconductor has since been at the forefront of electronic manufacturing services in India. However, in [specific date or period], the company expressed ambitions in semiconductor production, predominantly dominated by nations like Taiwan, South Korea, and the USA.
India has been an IT hub for decades but largely remained dependent on imported electronic components, particularly semiconductors.
The electronics industry’s massive import bill prompted the government to push for a self-reliant ecosystem, catalyzing initiatives to encourage indigenous production. Sahasra Semiconductor’s upcoming production facility represents the fruition of these initiatives.
Incorporating the latest semiconductor manufacturing technology, it’s expected to produce chips catering to various applications, from consumer electronics to industrial IoT.
Dedicated to advancing India’s semiconductor technology, this wing will likely drive innovations tailored for the local market and global clientele.
True to global trends, the facility emphasizes environmental sustainability, with measures in place to minimize waste and optimize energy consumption.
By reducing dependency on imports, India can significantly cut down its electronic import bill. The facility is also poised to generate thousands of skilled jobs, driving economic growth in the region.
As the global electronics industry faces supply chain disruptions, having domestic chip production can be a strategic advantage. It offers an additional layer of resilience against global market fluctuations. Sahasra’s endeavour can act as a beacon, attracting more players into the domestic semiconductor ecosystem and further solidifying India’s stance as a tech giant.
With an additional player in the market, global supply chains can diversify further, potentially leading to better resilience and stability.
Global chip prices fluctuate depending on Sahasra’s production capacity and quality. It could also lead to increased competition, driving innovations and improvements across the industry.
Countries looking to reduce their dependency on existing semiconductor giants might see India, particularly Sahasra, as a viable alternative, fostering better trade and diplomatic relations.
While the actual output, quality, and global competitiveness of Sahasra Semiconductor’s chips remain to be seen, the initial move is undeniably promising.
If the company can navigate the intricate maze of semiconductor production challenges and maintain consistency, it could lay the roadmap for a robust semiconductor ecosystem in India.
