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Sahasra Semiconductor to Become India's First Chipmaker

Published: 8.16.2023

Rajasthan-based Sahasra Semiconductor is poised to become India's inaugural chip manufacturer, marking a significant stride in the country's semiconductor landscape. Set to commence commercial production of locally-made memory chips in September or October, the company has established a semiconductor assembly, testing, and packaging unit in Bhiwadi district. It will initially focus on packaging basic memory products and later advance to more complex offerings like internal memory chips.


Sahasra Semiconductor is currently a participant in the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), which offers a 25% financial incentive on capital expenditure. Moreover, the company qualifies for the semiconductor incentive scheme, wherein the government subsidizes 50% of the project cost.


According to Sahasra CEO Varun Manwani, the company aims to secure orders from small and medium-sized enterprises and explore export prospects. Over the course of five to six years, Sahasra plans to invest ₹600 crore in chip production and infrastructure.


In addition to chip assembly and packaging, Sahasra Semiconductor is involved in designing its own LED driver ICs. The company is optimistic about contributing significantly to India's pursuit of self-sufficiency in the semiconductor sector.


The Significance of Semiconductor Manufacturing


Semiconductors are vital components in a vast array of electronic devices, encompassing smartphones, laptops, automobiles, and medical equipment. With the global demand for semiconductors projected to reach $1 trillion by 2030, the stakes are high.


Although India is a notable consumer of semiconductors, it predominantly relies on imports. This reliance on external suppliers exposes India to supply disruptions and price volatility. By establishing itself as a domestic chipmaker, Sahasra Semiconductor can aid in diminishing India's dependence on imports, fostering self-reliance in the semiconductor industry.


Challenges and Opportunities


The process of chip manufacturing is intricate and capital-intensive, demanding specialized equipment and skilled labor. Sahasra Semiconductor will face challenges in terms of setting up a chipmaking plant, recruiting skilled workers, and adhering to stringent quality standards. Nevertheless, the company appears well-equipped to navigate these challenges. Its management team boasts experience in the semiconductor field, and it enjoys the support of the Indian government through financial incentives.


A Vision for the Future


Despite its relative youth, Sahasra Semiconductor has ambitious aspirations. The company seeks to become a prominent player in the global semiconductor market and diversify its product portfolio to include logic chips and power management chips.


Sahasra Semiconductor's accomplishments could significantly bolster India's drive to attain self-sufficiency in the semiconductor domain. The company's journey underscores India's latent potential to become a pivotal force in the worldwide technology sector.

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