Rajasthan Gets Its First Semiconductor Plant, Strengthening India’s Chip Ambitions

Rajasthan has officially entered India’s semiconductor manufacturing landscape with the inauguration of the state’s first semiconductor facility in Bhiwadi. Developed by Sahasra Semiconductors, the plant is being recognized as India’s first SME-led semiconductor ATMP/OSAT (Assembly, Testing, Marking and Packaging/Outsourced Semiconductor Assembly and Test) facility, marking a major milestone in the country’s semiconductor mission.

The facility was inaugurated virtually by Union Minister for Electronics and IT Ashwini Vaishnaw in the presence of Rajasthan Chief Minister Bhajan Lal Sharma. Located at the Electronics Manufacturing Cluster (EMC) in Salarpur, Khushkhera, Bhiwadi, the plant is expected to play a key role in strengthening India’s semiconductor supply chain and reducing dependence on imports.

Built with an investment of over ₹150 crore under the Government of India’s SPECS scheme, the unit currently has the capacity to package nearly 60 million semiconductor units annually. The company plans to further expand the facility’s production capabilities in the coming years to support growing domestic and global demand.

The plant will focus on semiconductor packaging and testing for products including memory chips, RFID devices, LED driver ICs, microcontrollers, and eSIM solutions. Industry experts believe the facility will also encourage the growth of supporting electronics manufacturing ecosystems in northern India.

The inauguration comes at a time when India is aggressively pushing semiconductor manufacturing under its broader “Make in India” and “Atmanirbhar Bharat” initiatives. Rajasthan’s dedicated semiconductor policy and proactive industrial support are expected to attract additional investments in chip packaging, OSAT, and electronics manufacturing sectors.

Officials highlighted that the project is not only important from a technology perspective but will also generate skilled employment opportunities and help India develop indigenous semiconductor capabilities. The development further signals how emerging Indian companies are beginning to participate actively in the global semiconductor value chain, an area traditionally dominated by large international players.

With the launch of this facility, Rajasthan joins the growing list of Indian states positioning themselves as future semiconductor and electronics manufacturing hubs.