India’s First Semiconductor Assembly and Test Plant Inaugurated

RRP Electronics, which earlier this year announced plans to invest in semiconductor manufacturing in India under the government’s recent incentive schemes, has just inaugurated India’s first outsourced chip assembly and test (OSAT) facility in Navi Mumbai, Maharashtra. The company will take on assembly, testing, marking, and packaging (ATMP) for the semiconductor industry. Together with Swiss ASIC (application-specific integrated circuit) design firm HMT Microelectronic AG, the project is soon expected to produce up to 10,000 wafers per month.

While the plant will begin with ASIC chips, RRP plans to expand into the Lidar and automotive power segments based on current demand in India. It boasts of a Class 10,000 (ISO 7) cleanroom for front-of-fine processes and a Class 100,000 (ISO 8) cleanroom for end-of-line processes. These numbers indicate the permissible number of particles larger than 5 microns per cubic foot. Furthermore, it is designed to use minimal water and generate minimal effluent waste. RRP Electronics says it has invested Rs. 12,035 crore to construct this facility. 

RRP has stated that it plans to invest over Rs. 36,000 crore in total. A semiconductor fabrication unit is planned for the company’s second phase of growth, while phase three will see further expansion with additional capacity and flexibility. At present, 130 workers are employed at the plant, with that number set to grow to 400 to cover three shifts as capacity is expanded in phases. The company says this will kickstart the homegrown chip industry, reducing India’s need to import technology. 

The plant was inaugurated by Maharashtra Chief Minister Eknath Shinde, who was accompanied by deputy Chief Ministers Devendra Fadnavis and Ajit Pawar and Industries Minister Uday Samant. Also present were Chairman of RRP Electronics, Rajendra Chodankar, noted Indian physicist Anil Kakodkar, and former Indian cricketer Sachin Tendulkar, who is an investor in RRP.

In a post on his social media, Shinde expressed pride about Maharashtra’s “conducive environment, skilled manpower and strong support from the government”, which he said have helped attract large-scale investments in the semiconductor sector as well as green hydrogen and electric vehicles. He also promised the state government’s full support to RRP Electronics’ project.

Deputy Chief Minister Ajit Pawar remarked “A new chapter in the development of Maharashtra has started today… This semiconductor project will be an important step to strengthen the principles of Make in India and Atmanirbhar Bharat”.