India is in the middle of a massive technological shift, moving from being a primary consumer of chips to aiming to become a critical global manufacturing hub. The country’s semiconductor market is projected to more than double, soaring from an estimated $45-50 billion in 2024-2025 to reach $100-110 billion by 2030.
This growth is backed by the government’s ₹76,000 crore India Semiconductor Mission (ISM). While fabrication (fab) units often grab the headlines, the backend, specifically assembly, testing, marking and packaging (ATMP), also known as outsourced semiconductor assembly and test (OSAT), is equally vital to achieving ‘Make in India’ chip independence.
Global giants like Micron and domestic leaders like Tata Electronics are pouring billions into these facilities, recognising their role in de-risking global supply chains and bringing high-value manufacturing capabilities onshore.
As India prepares to roll out its first domestically packaged chips, below is a list of the most critical OSAT/ATMP facilities and companies under the ISM defining India’s new semiconductor frontier.
Micron Technology
Location: Sanand, Gujarat
Micron Technology, a US-based memory chip giant, is establishing a large-scale ATMP facility in Sanand, Gujarat, with a total investment of approximately ₹22,516 crore (~ $2.75 billion).
The project was approved in June 2023, becoming one of the first significant approvals under the ISM. Construction is planned in two phases, with Phase 1 expected to be operational by the second half of 2025.
This unit is critical for establishing India’s presence in the global memory and storage product supply chain. It caters to both domestic consumption and international export markets and is expected to generate significant direct and indirect employment.
Tata Semiconductor
Location: Morigaon, Assam
Tata Group’s subsidiary, Tata Semiconductor Assembly and Test (TSAT), is setting up a greenfield ATMP facility in Morigaon, Assam, with an investment of approximately ₹27,000 crore.
Approved in February 2024, this project is set to become a landmark industrial venture in the region, specialising in assembly and test operations for multiple chip types.
Once operational, the facility is anticipated to have a capacity to manufacture up to 48 million chips per day, serving multiple sectors including automotive, consumer electronics, and telecom.
CG Power
Location: Sanand, Gujarat
CG Power and Industrial Solutions, in partnership with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics, is developing an OSAT facility in Sanand, Gujarat, with a total investment of over ₹7,600 crore.
The unit, approved in February 2024, is intended to provide full-spectrum chip assembly, packaging and testing, including traditional and advanced packages such as system on integrated chip, quad flat package and ball grid array.
The project is planned in two phases (G1 and G2), with a combined eventual capacity to scale up to approximately 15 million units per day, focusing on applications across automotive, defence and industrial segments.
Kaynes Semicon
Location: Sanand, Gujarat
Kaynes Semicon, a subsidiary of Kaynes Technology, received cabinet approval for its ATMP unit in Sanand, Gujarat, with an investment of ₹3,307 crore. This unit, approved in September 2024, is designed to have a capacity of over 6 million chips per day.
The facility will manufacture chips for a broad range of high-demand applications, including electric vehicles, industrial electronics, consumer electronics and mobile phones, underscoring India’s commitment to building indigenous packaging capabilities.
HCL & Foxconn
Location: Jewar, Uttar Pradesh
A joint venture between the HCL Group and Foxconn is establishing an OSAT facility near the Jewar Airport in Uttar Pradesh, with an investment of approximately ₹3,706 crore.
Approved under the ISM, the project involves the assembly and packaging of display driver chips used in electronic devices such as mobile phones, laptops and automobiles.
The facility is expected to have a capacity of 20,000 wafers per month, translating to an output of up to 36 million packaged units per month, supporting the display ecosystem in India.
3D Glass Solutions
Location: Bhubaneswar, Odisha
3D Glass Solutions (3DGS) is setting up a vertically integrated advanced packaging and embedded glass substrate unit in Info Valley, Odisha, backed by an investment of ₹1,943 crore.
This unit will introduce the world’s most advanced packaging technology to India, focusing on 3D Heterogeneous Integration (3DHI) modules and glass interposers.
Its planned annual capacity includes approximately 69,600 glass panel substrates and 50 million assembled units, targeting high-value markets such as defence, AI and high-performance computing.
Advanced System in Package Technologies
Location: Andhra Pradesh
Advanced System in Package Technologies (ASIP), in technical collaboration with South Korea’s APACT, is establishing a chip packaging unit in Andhra Pradesh with an investment of ₹468 crore.
This facility is designed to produce 96 million chip packaging units annually, catering specifically to the needs of the mobile, automotive and general consumer electronics sectors. This project will contribute to diversifying the geographic distribution of semiconductor packaging capabilities across India.
Continental Device
Location: Mohali, Punjab
Continental Device India Ltd (CDIL) is undertaking a brownfield expansion of its existing discrete semiconductor manufacturing facility at Mohali, Punjab, with an investment of ₹117 crore.
This project, approved as one of the four recently announced non-ATMP projects under the ISM, is technically an expansion of an existing discrete semiconductor manufacturing unit rather than a new greenfield ATMP/OSAT facility.
The expansion will boost the manufacturing of high-power discrete semiconductor devices like metal oxide semiconductor field-effect transistors (MOSFETs) and insulated gate bipolar transistors (IGBTs), in both silicon and silicon carbide. This will increase its annual capacity by about 158.38 million units, significantly strengthening India’s capabilities in power semiconductor devices.
SicSem
Type: Primarily a fab which includes OSAT operations as well.
Location: Bhubaneswar, Odisha
SicSem Pvt Ltd, in collaboration with the UK-based Clas-SiC Wafer Fab, is setting up an integrated silicon carbide (SiC) based compound semiconductor fab and ATMP facility in Info Valley, Odisha, with an investment of ₹2,066 crore.
Although primarily a fab, the project also includes a substantial packaging component, featuring a planned annual packaging capacity of 96 million units. This facility marks India’s first commercial compound semiconductor fab and is vital for manufacturing high-performance chips for critical applications like defence, EVs and solar power inverters.
Additional OSAT/ATMP-Related Projects (Not Directly Under ISM)
Polymatech Electronics
Location: Chennai, Tamil Nadu
Polymatech Electronics, Chennai, Tamil Nadu, is a key private-sector player in the manufacturing of opto-semiconductor chips, particularly for LED applications. This facility represents a crucial, non-ISM investment in semiconductor assembly and packaging related to opto-electronics.
It covers the entire value chain from chip manufacturing to packaging for high-power LED devices, serving lighting applications and supporting the broader goal of domestic semiconductor and electronics production.
SPEL Semiconductor
Location: Chennai, Tamil Nadu
SPEL Semiconductor is often cited as India’s pioneer and a long-standing domestic OSAT company. Located in Chennai, Tamil Nadu, SPEL has been in the business of assembly, packaging and testing for several years, serving domestic and international clients.
Because it was established long before the ISM program, it is generally considered a non-ISM OSAT, although any future expansion could potentially seek new government incentives.
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