Rajasthan enters India’s semiconductor map: First chip packaging facility in the state inaugurated in Bhiwadi

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The India Semiconductor Mission (ISM), the transformative initiative by the Government of India, launched in December 2021, has paid rich dividends within just 5 years. The mission was launched after Covid crisis when chips stopped arriving from the traditional giant in the field, Taiwan.

The mission was aimed at propelling India as a leader in semiconductor and display manufacturing. With a substantial financial investment of ₹76,000 crore (around $10 billion), the mission aims to reduce India’s reliance on imported semiconductor chips and establish a robust, self-reliant electronics manufacturing ecosystem within the country.

In a major step on that path, now Rajasthan has got its first chip packaging facility in Bhiwadi in Rajasthan, which opened yesterday, May 15.

The Electronics Manufacturing Cluster (EMC) developed by ELCINA at Salarpur, Khushkhera, Bhiwadi, Rajasthan, along with the Semiconductor ATMP/OSAT facility of Sahasra Semiconductors Pvt. Ltd., was virtually inaugurated today by Union Minister for Electronics & Information Technology Shri Ashwini Vaishnaw.

Located in the industrial town of Bhiwadi, part of the Delhi-Mumbai Industrial Corridor region, the new facility is expected to strengthen India’s semiconductor supply chain while creating thousands of direct and indirect employment opportunities in the state. The project also signals Rajasthan’s emergence as a serious player in high-tech manufacturing sectors traditionally concentrated in southern and western India.

Union Electronics and Information Technology Minister Ashwini Vaishnaw virtually inaugurated the Semiconductor ATMP/OSAT facility of Sahasra Semiconductors Pvt. Ltd. and the EMC developed by ELCINA Electronics Manufacturing Cluster Pvt. Ltd. at Salarpur, Khushkhera.

The inauguration comes at a time when India is aggressively trying to reduce dependence on imported semiconductor components. Global supply chain disruptions during the COVID-19 pandemic and rising geopolitical tensions highlighted the risks associated with overreliance on a handful of countries for chip production. In response, the Government of India launched major incentive schemes to attract semiconductor investments under the India Semiconductor Mission.

Before this, India had inaugurated semiconductor plants of Micron Technology ATMP Plant, Kaynes Semicon OSAT Facility, and CG Semi OSAT Plant in Sanand, Gujarat, and SPEL semiconductor plant in Maraimalai Nagar, Chennai.

With the pace at which India is moving forward in the field, very soon, India will be totally aatmanirbhar in the field of semiconductors.

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