India's Semiconductor Ecosystem Takes Shape with $21 Billion Pipeline: The Final Phase of Chip Manufacturing Emerges as a Global Hub

India's semiconductor ecosystem is taking shape with a $21 billion pipeline. The government is promoting chip manufacturing from the finish line by establishing assembly, testing, marking, and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT) units led by tech giants and strategic alliances. This is the critical final phase before chips are shipped to diverse users, contributing 12-15% of a chip's total value. The industry's growth potential is significant, with the Indian government aiming to create a robust semiconductor ecosystem.

India's semiconductor ecosystem is undergoing significant transformation with a $21 billion pipeline, as the country aims to establish a robust semiconductor industry. The government is focusing on the critical final phases of chip manufacturing, including assembly, testing, marking, and packaging (ATMP) and outsourced semiconductor assembly and test (OSAT), to create a strong value chain.

The Indian government's initiative, 'SemiCon 2.0,' envisions a 5% share in global chip production by 2030. The government has allocated a $10 billion incentive package to develop the semiconductor ecosystem, with five projects approved under this scheme [2]. This includes chip fabrication, OSAT, and ATMP units led by tech giants and strategic alliances.

The ATMP and OSAT phases contribute 12-15% of a chip's total value, making them crucial for the industry. India's budding semiconductor landscape is seeing significant investments and partnerships. For instance, Tata Electronics is constructing India's first commercial semiconductor fabrication plant in Dholera, Gujarat, with a projected production capacity of 50,000 wafers per month [1].

Key players in the Indian semiconductor ecosystem are also focusing on advanced technologies. IZMO, a company known for its interactive marketing and visualization technology, is now investing in semiconductor packaging, offering 3D packaging and System-in-Package (SiP) solutions [2]. MosChip Technologies, with over 20 years of experience in ASIC, SoC, and VLSI design, is taking advantage of the government's Design Linked Incentive (DLI) scheme [2].

Cyient, with over 30 years of experience in engineering and technology solutions, is now focusing on semiconductor design through its subsidiary, Cyient Semiconductors [2]. HCL Technologies, one of India's top IT companies, is venturing into semiconductor design and testing, with partnerships with companies like NVIDIA and Google [2].

The growth potential in India's semiconductor industry is significant, with the government's efforts aimed at attracting global chip companies while promoting domestic players. This could open up substantial opportunities for investors in the semiconductor value chain.

References:
[1] https://www.business-standard.com/technology/tech-news/india-s-semiconductor-ecosystem-takes-shape-with-21-billion-pipeline-125060201386_1.html
[2] https://www.india.com/business/india-set-to-rule-semiconductor-sector-as-modi-govt-companies-to-benefit-most-include-not-mukesh-ambanis-reliance-narayana-murthys-infosys-7857082/