Prime Minister of India recently inaugurated India's first semiconductor assembly and packaging unit in Sanand, Gujarat

Prime Minister of India recently inaugurated India's first semiconductor assembly and packaging unit in Sanand, Gujarat

Prime Minister of India recently inaugurated India's first semiconductor assembly and packaging unit in Sanand, Gujarat.The inauguration marks a significant milestone in India’s semiconductor manufacturing journey, with the commencement of commercial production and shipment of the first made-in-India semiconductor memory modules from the Sanand ATMP facility.The facility inaugurated is an ATMP (Assembly, Test, Marking and Packaging) plant, a critical stage in semiconductor production where fabricated chips are packaged and tested before use in electronic devices.The plant will assemble, test, and package DRAM and NAND memory products, SSD storage modules and other advanced memory solutions for domestic and global markets.With an investment of about ₹22,516 crore by US-based Micron Technology, the facility symbolizes deepening India–US technology and supply-chain partnership in semiconductors.

Significance for India

¨     Strengthening Semiconductor Supply Chains: The global semiconductor market, valued at over USD 600 billion and projected to surpass USD 1 trillion by 2030, offers India an opportunity to reduce import dependence and strengthen supply chain resilience through domestic participation.

¨     Boost to Electronics Manufacturing: India’s electronics production exceeded USD 115 billion in 2023–24, and expanding domestic chip packaging capacity will support key sectors such as smartphones, automobiles, and consumer electronics.

¨     Employment and Skill Development: Semiconductor manufacturing is technology-intensive, generating high-skill employment in engineering and advanced manufacturing while also promoting specialised training and research collaborations in the semiconductor ecosystem.

¨     Integration into Global Value Chains: Establishment of the ATMP plant positions India as a reliable node in global semiconductor supply chains, complementing fabrication hubs in East Asia and the United States.

¨     Support for Emerging Technologies: Semiconductors are essential for artificial intelligence, electric vehicles, telecommunications, defence systems, and data centres, making domestic capability strategically important. 

India Semiconductor Mission

¨     The India Semiconductor Mission (ISM) was launched in 2021 to build a comprehensive semiconductor and display manufacturing ecosystem in the country.

¨     Recently, the ISM 2.0 was announced in the Union Budget 2026-27 to expand the semiconductor ecosystem beyond fabrication by promoting chip packaging, compound semiconductors, semiconductor design, and supply chain infrastructure.

¨     The mission operates under the Semicon India Programme with a financial outlay of ₹76,000 crore.

¨     It aims to support the establishment of semiconductor fabrication units, assembly and packaging facilities, and design capabilities.

¨     The programme provides financial incentives, infrastructure support, and policy facilitation for global and domestic semiconductor firms.

¨     ISM also promotes the development of semiconductor design start-ups and encourages collaboration with academic and research institutions.

Other Initiatives for Developing India’s Semiconductor Sector

¨     Production Linked Incentive (PLI) for Electronics: Provides financial incentives for domestic manufacturing of electronic components and devices, creating demand for semiconductor production.

¨     Design Linked Incentive (DLI) Scheme: Encourages semiconductor design start-ups by offering financial and infrastructural support for chip design and prototyping.

¨     Semiconductor Fabrication Projects: Several fabrication and packaging projects have been approved across multiple states to develop a pan-India semiconductor ecosystem.

¨     International Technology Partnerships: India is strengthening collaboration with countries such as the United States, Japan, and Taiwan to secure technology, supply chains, and critical minerals.