India’s semiconductor ecosystem is poised for a major boost in chip assembly and testing capacity
India is expected to reach a semiconductor production capacity of 75–80 million chips per day as several newly announced plants become operational by the end of this year or early next year, according to Ashok Chandak, President of the India Electronics and Semiconductor Association and SEMI India.
Speaking to a news portal, Chandak said that once the semiconductor facilities currently announced begin production, the country will witness a significant rise in chip assembly and testing capacity.
Chandak noted that achieving this scale of output would represent a major milestone for India’s semiconductor industry.
“Seventy-five to eighty million chips per day is a very big capacity. Some of it will get consumed in India, but a large part will be exported. By the end of the year, India’s reputation and position worldwide in the semiconductor value chain will be very different,” he added.
In the near term, India’s semiconductor manufacturing will primarily focus on assembly and testing rather than wafer fabrication. Chandak explained that the recently inaugurated facility by Micron Technology in India operates as an ATMP (Assembly, Test, Mark and Pack) plant, often described as a smart packaging facility.
Other companies developing similar infrastructure include Tata Electronics, Kaynes Technology, and CG Power and Industrial Solutions. These facilities will operate as OSAT (Outsourced Semiconductor Assembly and Test) plants.
“These plants essentially perform the same task of assembling and testing semiconductor chips,” Chandak said.
Chandak also highlighted that CG Power’s semiconductor unit will focus on a broad range of integrated circuits designed for industrial and automotive applications. The project will be implemented in two phases, and once both phases are completed, the facility could reach a production capacity of around 15 million chips per day.
With multiple semiconductor projects progressing simultaneously, India is expected to significantly strengthen its position in the global semiconductor ecosystem in the coming years.
