Separator

Rajasthan became the first firm to manufacture memory chips in india

Friday, 27 October 2023, 16:23 IST
Separator
Sahasra Semiconductors, based in Rajasthan, has achieved a significant milestone by becoming the first company to manufacture memory chips in India, even before Micron. The semiconductor assembly, test, and packaging unit of Sahasra started production this month in the Bhiwadi district and has already made its first shipment to various ecommerce platforms. Amrit Manwani, the Managing Director of Sahasra Group, expressed his delight by saying, "We have truly become the first company to sell micro-SD cards made in India, and the response we have received on ecommerce platforms has been phenomenal".

Sahasra, a technology company, is expected to ramp up its Bhiwadi unit to 30% capacity by the end of this year. The company is expected to realize its full potential in the next phase, which is scheduled for early 2024. During the second phase, Sahasra will begin advanced packaging of products such as internal memory chips. The company has been approved under two government initiatives: production-linked incentive (PLI) for components and sub-assemblies of white goods, and the scheme for promotion of manufacturing of electronic components and semiconductors (SPECS).

Under SPECS, the chip producer is eligible to receive 25% capital expenditure for setting up or expanding their manufacturing facility. Besides baby steps by Sahasra, the government's mega win in building the semiconductor ecosystem has been US-based Micron’s investment of $825 million in setting up a new assembly and test facility in Gujarat. The global chipmaker is expected to start manufacturing DRAM and NAND products in the facility for domestic and global demand starting in late 2024.

The Micron project is receiving fiscal support from both the central government and the Gujarat government. The central government is providing half of the entire project cost while the Gujarat government is providing 20% support. The project aims to develop semiconductor design capabilities. Recently, the technology major launched the latest edition of Tensor chips that were designed in India and are powering the Google Pixel smartphones. Additionally, Applied Materials has committed $400 million over four years to build a new engineering center in Bengaluru, while AMD has announced an investment of $400 million over five years to expand and serve as the company's largest design center in the world. Vedanta has also announced an overall outlay of $20 billion for setting up semiconductor, integrated glass, and display fabs in India.