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New facilities to drive growth in assembly and testing, boosting exports and global reputation significantly soon nationwide.
India's semiconductor ecosystem is ready for a significant boost with the expected ramp up of production capacity to 75 to 80 million chips per day by the end of this year or early next year. According to Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) and SEMI India, several newly announced semiconductor plants are set to begin operations driving growth in chip assembly and quality testing capacity.
Once these facilities become operational India will see a substantial increase in its semiconductor output with a large part of the production expected to be exported. Chandak noted that this scale of production marks a major milestone for the country's semiconductor sector that has been focusing on assembly and testing of chips rather than wafer fabrication.
The recently inaugurated facility of Micron Technology in India is an example of an ATMP (Assembly, Test, Mark and Pack) plant, which is considered a smart packaging facility. Similar facilities being developed by companies such as Tata Electronics, Kaynes Technology, and CG Power and Industrial Solutions will operate as OSAT (Outsourced Semiconductor Assembly and Test) plants, performing the same task of assembling and testing semiconductor chips.
These plants will manufacture a range of chips including advanced DRAM, NAND and SSD (solid state drives), which are widely used across sectors such as AI, smartphones, laptops, and automotive. Chandak noted that the demand for memory chips has increased significantly due to the rise in AI workloads, and there is a shortage in the market. The chips assembled and tested in India will be used across multiple applications including AI workloads, automotive systems, laptops and smartphones.
Currently the chips being assembled and tested in India are likely to be in the 14 nanometer to 28 nanometer range while the wafer itself will continue to come from outside India. Chandak emphasized that by the end of the year, India's reputation and position worldwide in the semiconductor value chain will be very different with a significant boost in its semiconductor output and export capacity.
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