Big boost! Rajasthan-based Sahasra Semiconductors becomes first Indian company to produce memory chips

Rajasthan-based Sahasra Semiconductors has achieved a significant milestone by becoming the first Indian company to produce memory chips, even before Micron. According to an ET report, Sahasra commenced production at its semiconductor assembly, test, and packaging unit in Bhiwadi district earlier this month. The company has already made its first shipment of micro-SD cards to various ecommerce platforms.
Amrit Manwani, managing director of Sahasra Group was quoted as saying, “We have truly become the first company to sell made-in-India micro-SD cards and the response we have received on ecommerce platforms has been phenomenal.”
Manwani said that the Bhiwadi unit is expected to operate at 30% capacity by the end of this year. Moreover, it aims to fully realize its potential in the upcoming phase, slated for early 2024. In the second phase, advanced packaging of products such as internal memory chips will commence.
Sahasra has received approval and support from two prominent government initiatives – the 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% of the capital expenditure for setting up or expanding their manufacturing facility.

Meanwhile, the Indian government has also achieved a major milestone in building the semiconductor ecosystem. US-based Micron, a global chipmaker, has invested $825 million in establishing a new assembly and test facility in Gujarat. The facility is expected to commence manufacturing DRAM and NAND products to cater to domestic and global demand by late 2024. The central government is providing substantial fiscal support, covering half of the entire project cost, along with an additional 20% support from the Gujarat government.
With regard to semiconductor design capabilities, Google recently launched the latest edition of Tensor chips, designed in India, to power their Pixel smartphones. Applied Materials has pledged $400 million over four years to establish a new engineering center in Bengaluru. AMD has also announced a $400 million investment over five years to expand and transform its Indian center into the company’s largest design facility globally. Furthermore, Vedanta has unveiled plans to invest $20 billion in setting up semiconductor, integrated glass, and display fabs in India.