Sahasra Semiconductors will start assembling and packaging memory chips at its plant in Rajasthan’s Bhiwadi from September or early October, eyeing a revenue of Rs 500 crore from the business in next four to five years.
The company will initially package basic memory products like MicroSD cards, chip-on-board and later move on to advanced packaging of products.
Sahasra Semiconductors is currently the beneficiary of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), under which it is eligible for 25% incentive on capital expenditure.
Unlike US-based Micron that will start producing own chips at its Gujarat plant from around December 2024, Sahasra is more of an outsourced semiconductor assembly and test (OSAT) company, which means they assemble and package chips for other brands.
Sahasra Semiconductors CEO Varun Manwani told FE that they will be first in India to assemble chips. “We actually did some trial production in March and the commercial production will start sometime in September and early October,” Manwani said, adding that the company gets orders from small and medium-sized firms and is also looking at export opportunities.
The company will invest Rs 600 crore over five to six years. Till now, Sahasra has invested close to Rs 110 crore to start the first phase of assembly and packaging of chips.
In the next four to five years, Saharsa is targeting a Rs 500 crore revenue from the semiconductor business, he said.
“We will see ourselves as one of the niche players in the OSAT business. We will be doing multiple packages. As we move along, it will become clear what are the low hanging fruits that can be eyed rather than going for very advanced packages,” Manwani added.
About their plans, Manwani said, “Now, all phones and devices come with internal memory, which means the chip is inside. That is more advanced packaging, which we will tap in the next year and a half. We are starting with basic packaging of chips first.
Besides the assembly of chips, the company is currently designing its own LED driver ICs, which is its internal intellectual property.
Sahasra is also looking to apply under the semiconductor incentive scheme, where the government will bear 50% of the project cost. “We started working on the fab before the semiconductor scheme was announced. First, we will utilise the investments under the SPECS scheme and then apply under the semiconductor incentive scheme,” Manwani said.
Earlier, the government had given approval to Micron to set up a plant in Gujarat for the production of memory chips. The US-based company will be investing $2.75 billion for the project. Financial Express