India’s Sahasra Semiconductor set to commence chip production in September 2023
- In Reports
- 02:31 PM, Aug 16, 2023
- Myind Staff
Breaking ground in the semiconductor landscape, Sahasra Semiconductor, headquartered in Rajasthan, is gearing up to commence the commercial production of the first domestically manufactured memory chips in India. According to Sahasra's CEO Varun Manwani, the production is slated to kick off either in September or the early days of October, as reported by FE.
In an industry-defining move, Sahasra is poised to achieve the remarkable distinction of becoming the pioneering company in India to roll out chips ahead of the competition, including Micron. This forthcoming accomplishment stands to reshape the semiconductor landscape in India, underscoring Sahasra's pivotal role in driving the nation's technological advancement.
Having set up its semiconductor assembly, test, and packaging unit in the Bhiwadi district, the company has successfully commenced the packaging of fundamental memory products. MicroSD cards and chip-on-board components are among the initial offerings. Furthermore, the company is progressing towards advanced packaging, involving intricate products like internal memory chips.
Highlighting its strategic approach, Sahasra is an active participant in the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). This affiliation has made the company eligible for a notable 25 percent financial incentive tied to its capital expenditure.
“We will be the first Indian semiconductor company to start the production of chips. We actually did some trial production in March and the commercial production will start sometime in September or early October,” Manwani said.
The company has already begun receiving orders from small- and medium-sized companies, enlisting their services to manufacture chips on their behalf. Simultaneously, the company is actively exploring potential export opportunities.
In its committed endeavor towards chip production and the concurrent establishment of necessary infrastructure, the company has earmarked an investment of ₹600 crore. This financial commitment is projected to span a timeframe of five to six years. For the initial phase, which entails the assembly and packaging of chips, Sahasra has already invested a substantial sum of nearly ₹110 crore.
“Now, all phones and devices come with internal memory, which means the chip is inside. That is likely more advanced packaging, which we will tap into in the next year-and-a-half. We are starting with basic packaging of chips first,” Manwani added.
In addition to its chip assembly activities, the company is presently engaged in the development of its proprietary LED driver ICs, representing its in-house intellectual property. Moreover, Sahasra is actively considering submission of an application under the semiconductor incentive scheme. This initiative involves the government shouldering 50 percent of the project's total cost.
Image source: Indian Express
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