India to Produce 75-80 Million Chips Daily as New Semiconductor Plants Ramp Up

Speaking to ANI, Chandak said that once all the announced semiconductor facilities become operational, India will see a significant boost in chip assembly and testing capacity.

"So, totally all these companies put together, those who have announced the plants, in production by the end of the year, maybe early next year, depending on the schedule, we are looking at 75 to 80 million chips per day capacity, which is progressive," he said.

He added that this scale of production would mark a major milestone for the country's semiconductor sector.

"Seventy-five to eighty million chips per day is a very big capacity. Some of it will get consumed in India, but a large part will be exported. By the end of the year, India's reputation and position worldwide in the semiconductor value chain will be very different," he said.

Chandak explained that India's semiconductor output in the near term will largely focus on assembly and testing of chips rather than wafer fabrication.

According to him, the recently inaugurated facility of Micron Technology in India operates as an ATMP (Assembly, Test, Mark and Pack) plant, which is considered a smart packaging facility. Similar facilities being developed by companies such as Tata Electronics, Kaynes Technology and CG Power and Industrial Solutions will operate as OSAT (Outsourced Semiconductor Assembly and Test) plants.

"These plants essentially perform the same task of assembling and testing semiconductor chips," Chandak said.

He noted that the Micron plant will manufacture memory chips, including advanced DRAM, NAND and SSD (solid-state drives), which are widely used across sectors.

"These are among the latest cutting-edge chips. Because of the rise in AI workloads, demand for memory chips has increased significantly and there is a shortage in the market," he said, adding that much of the global capacity is currently focused on AI requirements, while sectors such as smartphones, laptops and automotive are facing supply challenges.

Chandak said the chips assembled and tested in India will be used across multiple applications, including AI workloads, automotive systems, laptops and smartphones. At present, the chips being assembled and tested are likely to be in the 14 nanometre to 28 nanometre range, while the wafer itself will continue to come from outside India.

"The wafer is not made in India yet; it comes from outside and the work done here is assembly and testing," he said.

He further said that other companies are preparing to begin production in the coming months. Kaynes Technology is expected to assemble advanced power modules including IGBTs and other power devices, while also producing printed circuit boards (PCBs) that serve as the base for electronic products. These components will cater to sectors such as automotive, industrial, consumer electronics and defence.

Meanwhile, Tata Electronics is expected to run an OSAT facility in Jagiroad, Assam, where it will manufacture power devices and multi-chip modules mainly for industrial and automotive applications. According to Chandak, the Tata facility will have a capacity of more than 50 million chips per day.

He also said that CG Power's semiconductor unit will focus on a broad range of integrated circuits for industrial and automotive applications. The project will be executed in two phases, and once both phases are completed, the facility's capacity could reach 15 million chips per day.

With multiple projects progressing simultaneously, Chandak said India is set to strengthen its position in the global semiconductor ecosystem in the coming years.

- ANI