Introduction
In a major boost to India’s burgeoning semiconductor ecosystem, Bengaluru-based UHP Technologies is launching a state-of-the-art semiconductor equipment manufacturing facility near the Kempegowda International Airport.
The new plant, spread across 20,000 square feet, will begin operations on Monday. With a $2.3 million contract secured and significant future investments planned, the company is set to play a pivotal role in India’s efforts to establish a strong presence in the global semiconductor supply chain.
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Key Highlights of UHP Technologies’ Milestone
- Facility Launch: The manufacturing plant is located in Doddaballapur and will specialize in semiconductor equipment production, a critical component in the chip-making process.
- Initial Investment: KASFAB Tools, a subsidiary of UHP Technologies, built the facility with an investment of ₹20 crore.
- Major Contracts: The company signed a $2.3 million contract with a US-based firm and is negotiating with global giants for more deals.
- Future Expansion: Plans include an additional ₹250 crore investment and the establishment of two more plants in the same area.
- Target Market: The company aims to cater to the US, Japanese, and Indian markets, tapping into the $25 billion global semiconductor equipment manufacturing sector.
Ramping Up India’s Semiconductor Ecosystem
UHP Technologies specializes in Ultra High Purity (UHP) gas and chemical delivery systems, critical for semiconductor manufacturing.
According to Manjunath Jyothinagara, Managing Director of KASFAB Tools, the facility is ready to deliver 53 pieces of equipment within the first year. The first shipment is expected between mid-May and June 2025.
“This equipment is essential for processing wafers into chips,” Jyothinagara explained. “If demand increases, we have the capacity to scale production to 500 pieces annually.”
The company is also in discussions with Applied Materials and Tokyo Electron, two of the largest players in the semiconductor equipment market.
Strategic Focus on Global Markets
The global market for contract manufacturing in semiconductor equipment is valued at $25 billion, and India currently holds no share in this lucrative segment. UHP Technologies sees this as a significant opportunity.
“Globally, companies like TSMC, Intel, Hynix, and Samsung spend $125 billion on equipment annually. Of this, $25 billion is for contract manufacturing. We aim to capture a portion of this market and generate ₹50 crore in revenue during our first year. Over the next 3–5 years, we are targeting revenue of $500 million from India alone.”
Jyothinagara stated
India’s Growing Semiconductor Landscape
The government’s Semicon India Programme has approved five semiconductor units with a total investment of ₹1.52 lakh crore.
These initiatives will create 25,000 direct advanced technology jobs and 60,000 indirect jobs, according to the Ministry of Electronics and Information Technology (MeitY).
UHP Technologies’ entry aligns with these efforts, as India seeks to reduce its dependence on imports and build a robust semiconductor manufacturing ecosystem.
Jyothinagara emphasized the importance of local supply chains:
“Once fabs like Tata’s in Dholera and Micron in Gujarat begin production, we’ll need Indian-made equipment, chemicals, and gases to support them. MSMEs with turnovers between ₹1,000 crore and ₹5,000 crore have a critical role in this ecosystem.”
Future Growth and Investments
UHP Technologies will invest ₹250 crore within the next 6–12 months after delivering its first order. The company plans to build two more plants in Doddaballapur.
This expansion will increase India’s semiconductor equipment production and strengthen its position against global players in the US and Japan.
Why Semiconductor Manufacturing Matters
The demand for semiconductors is growing exponentially, driven by industries such as:
- Consumer electronics
- Automotive (electric and autonomous vehicles)
- Telecommunications (5G technology)
- Artificial intelligence and IoT
India, despite being a major consumer of electronic products, currently imports most of its semiconductors. The government’s push to establish local manufacturing is crucial for economic growth and technological self-reliance.
Challenges and Opportunities
While the potential is immense, several challenges remain:
- Skilled Workforce: India needs a larger pool of highly skilled engineers and technicians for semiconductor manufacturing.
- Supply Chain Integration: Developing a local supply chain for chemicals, gases, and equipment is critical.
- Global Competition: Competing with established players like Taiwan, South Korea, and the US requires significant investment and innovation.
However, with supportive policies and initiatives like the PLI (Production Linked Incentive) Scheme, India is well-positioned to overcome these hurdles.
Conclusion
The launch of UHP Technologies’ new facility is a significant milestone in India’s journey toward semiconductor self-reliance.
With its focus on cutting-edge manufacturing, strategic global partnerships, and ambitious growth plans, the company aims to make a lasting impact on the industry.
As India builds its semiconductor ecosystem, UHP Technologies is not just manufacturing equipment—it is laying the foundation for a future where India emerges as a global semiconductor hub.