ATMP: How India Can Leapfrog the Competition in Chip Manufacturing

Sahasra Semiconductor, a relatively lesser-known company headquartered in Bhiwadi, Rajasthan is actively preparing to commence chip production.Following suit, Micron is also anticipated to initiate chip production. Meanwhile, Foxconn is already present in India, engaged in the assembly of iPhones.

Introduction

In recent years, India has embarked on a transformative journey to establish a robust semiconductor ecosystem, aiming to achieve technological self-sufficiency and reduce its dependence on global supply chains.

One of the key strategies in this endeavor is the establishment of Assembly, Testing, Marking, and Packaging (ATMP) facilities. While these plants might not be full-fledged fabrication units, they play a vital role in catalyzing India’s ambitions in the semiconductor industry.

Sahasra Semiconductor, a relatively lesser-known company headquartered in Bhiwadi, Rajasthan, has made a surprising global announcement. CEO Varun Manwani has revealed to the Financial Express that the company is actively preparing to commence chip production as early as September or October.

Following suit, Micron, a US-based company, is also anticipated to initiate chip production, possibly within the upcoming year. Meanwhile, Foxconn is already present in India, engaged in the assembly of iPhones.

This blog post delves into the significance of ATMP plants and how they are poised to shape India’s semiconductor landscape in the coming years.

Read more: Sahasra Semiconductor Beats Micron to Become First Indian Company to Produce Chips

ATMP Plants: A Pragmatic Starting Point

Building full-scale semiconductor fabrication facilities, also known as fabs, is an endeavor that requires substantial investment, time, and technological expertise.

ATMP plants, on the other hand, offer a pragmatic starting point for India’s semiconductor journey. These plants focus on the latter stages of semiconductor production, which include assembly, testing, marking, and packaging of integrated circuits. While they do not involve the intricate process of creating semiconductor wafers, they are essential in transforming semiconductor components into functional devices ready for integration into electronic products.

TR Shashwath, co-founder of Mindgrove Tech, aptly points out that ATMP plants are a stepping stone to the establishment of fabs. These plants take finished semiconductor dies and work on them, offering the flexibility to work on a wide range of technology nodes, from older ones to the most advanced.

Fabrication plants, on the other hand, come later in the process due to their complexity and cost. This phased approach allows India to gradually build up its semiconductor capabilities while laying the groundwork for future advancements.

Reducing Dependence and Ensuring Resilience

By initiating domestic assembly, testing, and packaging processes, India aims to reduce its dependence on global supply chains, ensuring a consistent and secure supply of essential semiconductor components.

The recent chip shortage during the peak of the pandemic highlighted the vulnerability of global supply chains. ATMP plants offer a solution by bolstering India’s resilience against such disruptions, safeguarding critical industries that rely on semiconductor components.

There are several reasons why India is well-positioned to succeed in ATMP. First, India has a large and growing pool of skilled engineers and technicians. Second, India has a low cost of labor. Third, India has a favorable government policy environment for the semiconductor industry.

Fostering an Ecosystem of Innovation

ATMP plants not only address immediate supply chain challenges but also foster an ecosystem of innovation. These facilities serve as a hub for collaboration between local players, research institutions, and technology companies.

This collaborative environment facilitates knowledge sharing, skill development, and the creation of indigenous technologies.

The presence of ATMP plants provides a platform for engineers and technicians to gain hands-on experience in cutting-edge semiconductor technologies, laying the foundation for future breakthroughs.

Furthermore, the supportive ecosystem created by ATMP plants attracts investments from global semiconductor companies and nurtures indigenous start-ups.

This nurturing environment encourages start-ups to develop innovative solutions and products that cater to both domestic and international markets.

The synergy between established players and emerging innovators can lead to the creation of a vibrant semiconductor ecosystem in India.

Conclusion

In the pursuit of technological self-sufficiency and innovation, India’s emphasis on the establishment of Assembly, Testing, Marking, and Packaging (ATMP) facilities marks a strategic and pragmatic approach.

These plants play a pivotal role in the semiconductor production process, bridging the gap between component manufacturing and final integration into electronic products. As India’s ATMP capabilities evolve and mature, they set the stage for the eventual establishment of full-fledged fabrication facilities.

The journey toward semiconductor self-sufficiency is a multi-faceted one, involving collaboration, innovation, and a steadfast commitment to technological advancement.

ATMP plants serve as the foundation upon which India’s semiconductor landscape of the future will be built.

With the promise of job creation, resilience, and indigenous innovation, ATMP plants hold the potential to reshape India’s role in the global semiconductor industry and drive the nation’s technological progress for years to come.

Editorial Team
Editorial Team
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