India's first SME-led semiconductor chip facility inaugurated in Rajasthan
New Delhi, May 15
India's first SME-led semiconductor chip manufacturing facility by Sahasra Semiconductors Pvt Ltd was inaugurated in Rajasthan's Bhiwadi on Friday, marking a major step in the country's push to strengthen domestic semiconductor and electronics manufacturing.
The Semiconductor ATMP/OSAT facility, located inside the Electronics Manufacturing Cluster (EMC) developed by ELCINA at Salarpur, Khushkhera, was virtually inaugurated by Union Electronics and IT Minister Ashwini Vaishnaw in the presence of Rajasthan Chief Minister Bhajan Lal Sharma and Union Minister Bhupender Yadav.
Addressing the gathering, Vaishnaw described the development as "a historic day for the state of Rajasthan as it enters the semiconductor industry - a strategically critical industry globally from a geopolitical perspective."
The minister highlighted the rapid growth of India's electronics sector over the past 12 years, saying production has "grown 6 times to nearly Rs 13 lakh crores" while exports have risen to "around Rs 4.24 lakh crores." He also said that "mobile phones have now become India's top export commodity."
According to the release, the semiconductor facility has been developed under the Ministry of Electronics and Information Technology's Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) with an investment of over Rs 150 crore.
Spread over 57,000 square feet, the facility is equipped with Class 10K and 100K cleanrooms and will package memory chips used in products such as Micro SD cards and flash storage devices, along with LED driver ICs, eSIMs and RFID products.
The release said the unit currently has an annual packaging capacity of 60 million semiconductor units and plans to scale this up to "nearly 400-600 million units annually over the next 2-3 years."
It added that more than 60 per cent of the facility's production is already being exported to markets including the United States, Germany, France, Eastern Europe, China and Nepal.
The Electronics Manufacturing Cluster at Bhiwadi has been developed over 50.3 acres at a project cost of Rs 46.09 crore, with direct government support of Rs 20.24 crore under the EMC scheme.
According to the release, the cluster has already attracted planned investments of over Rs 1,200 crore from 20 companies operating across semiconductor packaging, electronic components, EV parts, RFID technologies and industrial electronics. Eleven companies are already operational with investments exceeding Rs 900 crore, generating employment for more than 2,700 people.
Rajasthan Chief Minister Bhajan Lal Sharma said the state government had introduced a Rajasthan Semiconductor Policy in March 2026 and was working to develop the region near Delhi-NCR into a manufacturing hub.
The release said the event was conducted virtually in line with Prime Minister Narendra Modi's appeal to reduce fuel usage "in light of the current global situation."
— ANI
Reader Comments
Very encouraging to see India's push into semiconductor manufacturing. The 60 million unit capacity is impressive for a startup facility. The export figures to US, Europe and China show global confidence in Indian manufacturing.
I visited that area near Bhiwadi last year. It's turning into a real electronics hub! 11 companies already operational and 2700 jobs created. The Rajasthan Semiconductor Policy announced in 2026 is also a smart move. At this rate, we'll be a chip manufacturing hub in a decade. 🚀
Good step but 150 crore is peanuts for semiconductor fabs. Real challenge is getting advanced nodes. This is just packaging and testing. India needs to focus on design and fabrication too. Still, every step counts and this shows the ecosystem is growing.
Finally some concrete action on semiconductor manufacturing! The virtual inauguration due to fuel saving concerns is also thoughtful. But I'm curious about the technology used - are they using imported equipment or developing indigenous tools? Either way, this is a historic moment for Rajasthan.
The fact that 60% of production is already exported shows the quality standards are world-class. Micro SD cards, flash storage, LED drivers - these are products we use daily. And the plan to scale from 60 million to 400-600 million units annually is impressive. Make in India is working! 💪
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.