Sahasra Semiconductor Beats Micron to Become First Indian Company to Produce Chips

This is a major milestone for the Indian semiconductor industry, as it will be the first time that India has been able to produce its own memory chips.

Introduction

In a significant leap forward for India’s technology sector, Rajasthan-based Sahasra Semiconductor is gearing up to launch commercial production of the first-ever made-in-India memory chips.

This remarkable achievement places Sahasra ahead of industry giants like Micron, positioning the company as a pioneering force in the country’s semiconductor landscape.

CEO Varun Manwani recently revealed the company’s plans to commence production in September or early October, underscoring Sahasra’s pivotal role in advancing India’s capabilities in chip manufacturing.

Read more: India’s Semiconductor Future Brightens: $1.1B Invested, 10 Major Milestones Reached in 1 Year

Sahasra Semiconductor

Sahasra Semiconductor is an outsourced semiconductor assembly and test (OSAT) company. This means that it will not be designing or manufacturing its own chips, but will instead be assembling and testing chips that are designed and manufactured by other companies.

The company’s first products will be basic memory products such as MicroSD cards and chip-on-board (COB) products.

Sahasra Semiconductor’s Journey

Sahasra Semiconductor has made remarkable strides in establishing itself as a key player in the semiconductor industry.

The company has set up a state-of-the-art semiconductor assembly, test, and packaging unit in the Bhiwadi district, with an initial focus on packaging basic memory products, such as MicroSD cards and chip-on-board assemblies.

The company’s facility is located in Bhiwadi, Rajasthan. The facility has a clean room area of 8,000 square meters and is equipped with state-of-the-art semiconductor assembly and test equipment. The company has invested over ₹100 crore in the facility.

With a forward-looking vision, the company intends to gradually transition to advanced packaging, including internal memory chips, to meet the evolving demands of the tech market.

Sahasra’s Distinct Approach

Unlike traditional chip manufacturers like Micron, Sahasra Semiconductor operates as an outsourced semiconductor assembly and test (OSAT) company.

This unique approach positions Sahasra as a crucial partner in the semiconductor ecosystem, collaborating with various brands to assemble and package chips for their devices.

This collaborative model has earned Sahasra a prominent position within the industry, as it plays a pivotal role in enabling smaller and medium-sized companies to access cutting-edge chip technology without the need for extensive in-house manufacturing capabilities.

Driving Innovation and Export Opportunities

Varun Manwani, CEO of Sahasra Semiconductor, highlights the company’s commitment to innovation and growth. While initially focusing on domestic chip packaging needs, Sahasra is also exploring export opportunities, aiming to expand its footprint beyond India’s borders.

The company’s ability to cater to smaller brands and its agility in meeting market demands positions it favorably to seize international opportunities and contribute to India’s technology exports.

The production of memory chips in India by Sahasra Semiconductor will have a number of positive impacts on the country’s economy.

Job creation: The company will create direct and indirect jobs in the semiconductor industry. The direct jobs will be in the production facility, while the indirect jobs will be created in the supply chain.

Reduced imports: India currently imports most of its memory chips. The production of memory chips in India will help to reduce these imports and save foreign exchange.

Boosted exports: India can export its memory chips to other countries. This will help to boost the country’s exports and improve its trade balance.

Technology development: The production of memory chips will require the use of advanced technology. This will help to develop the country’s technological capabilities.

Attraction of investment: The production of memory chips will attract investment from foreign companies. This will help to boost the country’s economy.

Government Support and Incentives

Sahasra Semiconductor’s journey is significantly bolstered by its participation in the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).

Under this scheme, the company is eligible for a 25% financial incentive on capital expenditure, further incentivizing its growth and investment in chip manufacturing capabilities.

This support reflects the Indian government’s recognition of the strategic importance of semiconductor manufacturing and its commitment to fostering a self-reliant technology ecosystem.

Investment and Growth Prospects

Sahasra Semiconductor’s ambitious plans for the future involve a substantial investment of ₹600 crore over a span of five to six years.

This investment will not only drive chip production but also facilitate the development of necessary infrastructure to support the growing demands of the semiconductor industry.

The company’s initial investment of ₹110 crore has already laid the foundation for the first phase of assembly and packaging operations.

A Glimpse into the Future

As Sahasra Semiconductor embarks on its journey to become a leading chip manufacturer, the company’s focus on innovation, collaboration, and adaptability stands out.

With an eye toward advanced packaging and international expansion, Sahasra is poised to play a pivotal role in shaping India’s semiconductor landscape.

As the company prepares to bring its first made-in-India memory chips to market, it sets a remarkable precedent for indigenous technological advancements and positions India as a contender on the global semiconductor stage.

Conclusion

Sahasra Semiconductor’s upcoming commercial production of made-in-India memory chips represents a pivotal moment in India’s technology industry. The company’s unique approach, commitment to innovation, and collaboration-driven model have positioned it as a trailblazer in the semiconductor domain.

With a forward-looking vision and government support, Sahasra is set to catalyze India’s technological self-reliance, contribute to economic growth, and solidify its place in the global semiconductor ecosystem.

Editorial Team
Editorial Team
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