Rajasthan has officially entered India's burgeoning semiconductor manufacturing landscape with the inauguration of its first semiconductor plant in Bhiwadi on Friday, May 15, 2026. The facility, operated by Sahasra Semiconductors Pvt Ltd, is a significant step towards bolstering the nation's domestic electronics and chip supply chain capabilities. This move aligns with India's broader strategy to deepen semiconductor localization and reduce dependence on critical foreign technologies.
A New Era for Rajasthan's Industrial Sector
The Semiconductor Assembly, Testing, Marking, and Packaging (ATMP/OSAT) facility was virtually inaugurated by Union Electronics and IT Minister Ashwini Vaishnaw, in the presence of Rajasthan Chief Minister Bhajan Lal Sharma and Union Minister Bhupender Yadav. Minister Vaishnaw described the event as a "historic day" for Rajasthan, emphasizing the state's entry into the strategically critical global semiconductor industry. The plant is located within the Electronics Manufacturing Cluster (EMC) developed by ELCINA at Salarpur, Khushkhera. This cluster has already attracted planned investments exceeding ₹1,200 crore from 20 companies involved in semiconductor packaging, electronic components, EV parts, RFID technologies, and industrial electronics. Eleven companies are already operational, with investments surpassing ₹900 crore and generating employment for over 2,700 people.
Boosting India's Electronics Manufacturing Prowess
This new facility is a key component of India's push to expand its domestic electronics manufacturing. Minister Vaishnaw highlighted the sector's impressive growth, stating that production has "grown 6 times to nearly ₹13 lakh crore" over the past 12 years, with exports reaching approximately ₹4.24 lakh crore. Mobile phones have now become India's top export commodity, underscoring the sector's economic significance. The Sahasra Semiconductors plant, set up with an investment of over ₹150 crore under the Ministry of Electronics and Information Technology's Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), is expected to significantly contribute to this growth. The facility boasts advanced Class 10K and 100K cleanrooms, essential for the precise processes involved in semiconductor packaging. Initially, the plant has an annual packaging capacity of 60 million semiconductor units, with plans to scale this up to 400-600 million units annually within the next two to three years. A substantial portion, over 60 percent, of the facility's production is already earmarked for export to markets including the United States, Germany, France, China, and Nepal.
Strategic Vision for Self-Reliance
The inauguration of this facility aligns with India's broader strategic vision, encapsulated by initiatives like 'Make in India' and 'Digital India,' aimed at achieving greater technological self-reliance. The Rajasthan Semiconductor Policy 2026, introduced by the state government, aims to transform the region near Delhi-NCR into a prominent manufacturing hub. This development is part of a larger national effort to diversify the semiconductor landscape, moving beyond just fabrication to encompass crucial stages like assembly and packaging. The government's continuous monitoring and strategic interventions, including the evolution to India Semiconductor Mission (ISM) 2.0, prioritize the development of a comprehensive, 'full-stack' semiconductor ecosystem. This includes fostering domestic equipment manufacturing, specialized materials, and indigenous intellectual property, thereby mitigating global vulnerabilities and enhancing India's competitiveness in this geopolitically sensitive industry. The facility will focus on packaging memory chips for Micro SD cards and flash storage devices, along with LED driver ICs, eSIMs, and RFID products, further integrating India into the global technology value chain.