Maharashtra’s First Semiconductor Chip Production Factory To Start Operations On September 16

Maharashtra's First Semiconductor Chip Production Factory To Start Operations On September 16
Rajendra Chodankar, President of RRP Electronics, announced that the state’s inaugural semiconductor chip production factory will begin operations on September 16. This marks the state’s first venture using the Outsourced Semiconductor Assembly and Testing (OSAT) system. The project, inaugurated in Navi Mumbai in March, aims to significantly reduce reliance on imported semiconductor chips. During the Semiconductor Ecosystem Conference held at the Maratha Chamber of Commerce, Industries, and Agriculture (MCCIA) in Pune, Chodankar emphasized the critical need for domestic semiconductor chip production. “Currently, India imports semiconductor chips from Taiwan and South Korea,” he noted.
Spread over 45,000 square feet, the new facility has received substantial grants from the state government and is expected to be fully operational by September. Chodankar highlighted the significant support from HMT Microelectronics in Switzerland, which will supply the necessary semiconductor wafers. He expressed optimism that the project would create numerous self-employment opportunities within the state.
Understanding OSAT Technology
OSAT technology involves the use of semiconductor wafers to develop semiconductor chips. The creation of these wafers requires highly sophisticated and advanced foundries, which India currently lacks. However, until such foundries are established domestically, chip development factories are being set up in key cities across India.
This initiative is expected to decrease the country’s dependence on foreign imports by at least 25 percent and eventually pave the way for establishing domestic semiconductor foundries, thus boosting job creation.
“The first semiconductor production factory using OSAT technology in the state is set to commence operations in September. The state government is allocating land in Talode for establishing a foundry to develop semiconductor wafers,” Chodankar added.
The establishment of this factory represents a significant step towards India’s goal of becoming self-reliant in semiconductor production, fostering technological advancement, and creating job opportunities.