Sahasra Semiconductor, based in Rajasthan, India, is set to begin commercial production of the first Indian-made memory chips from September or early October. CEO Varun Manwani stated that the company will package basic memory products initially, such as MicroSD cards and chip-on-board, and then progress to more advanced packaging, including internal memory chips.

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Sahasra Semiconductors new building

As part of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Sahasra Semiconductor is eligible for a 25% financial incentive on capital expenditure. Unlike Micron, which produces its own chips, Sahasra operates as an Outsourced Semiconductor Assembly and Test (OSAT) company, assembling and packaging chips for other brands.

Manwani highlighted that the company conducted trial production in March and will commence commercial production in September or early October. Sahasra Semiconductor already receives orders from small and medium-sized companies to manufacture chips and is exploring export opportunities as well.

To support chip production and infrastructure development, Sahasra plans to invest Rs 600 crore over five to six years. In the first phase of chip assembly and packaging, the company has already invested approximately Rs 110 crore.

In addition to chip assembly, Sahasra Semiconductor is currently designing its own LED driver ICs, which are considered their internal intellectual property. The company also intends to apply for the semiconductor incentive scheme, where the government will cover 50% of the project cost.

Sahasra sources tools from countries like Japan, Korea, and Thailand, relying on suppliers such as Disco Corp and Kulicke and Soffa.

Over the next four to five years, the company aims to generate Rs 500 crore in revenue from the semiconductor business due to the growing domestic demand. Sahasra Semiconductor sees itself as a niche player in the OSAT business and plans to focus on multiple packaging options, including OSAT ATMP, in order to target attainable opportunities rather than pursuing highly advanced packages.