Sahasra Semiconductors plans to invest Rs 750 cr to implement memory chip unit
Electronics company Sahasra Semiconductors said it plans to become the first company to set up a memory chip assembly, testing and packaging unit in the country and start selling locally made chips. here December.
Sahasra Semiconductors Chairman and Managing Director Amrit Manwani told PTI that the company plans to invest a total of Rs 750 crore in setting up the unit at Bhiwadi in Rajasthan.
“We will be investing Rs 150 crore this fiscal year for setting up the ATMP facility at the Elcina Manufacturing Cluster in Bhiwadi, Rajasthan. We expect it to be operational by the end of this year. Once the market is established and we get income in the range of Rs 250-300 crore, we will again invest Rs 600 crore. In total, we plan to invest Rs 750 crore initially,” Manwani said.
He said the company’s first full financial year of commercial production is expected to generate revenue of around Rs 50 crore, which is expected to reach Rs 500 crore by 2025-2026.
Semiconductors are transformed into a complete product ready for sale in ATMP (Assembly, Testing, Marking and Packaging) units. This is the next step after the wafers or chips are produced in a manufacturing facility.
Manwani said the company has already invested Rs 60 crore in the current financial year and by March 2023, it will complete the investment of Rs 75 crore. The remaining Rs 75 crore will be invested in 2023-24.
The company has invested heavily in the purchase of equipment and the establishment of clean rooms necessary for the packaging of semiconductors.
“We expect the first set of equipment to leave Singapore this week and arrive at our factory in mid-August. Lots of equipment will arrive between August and September. We will probably have trials in November and we will be able to market the production by mid-August December of this year,” Manwani said.
Sahasra Semiconductors is one of the companies whose proposal to establish an ATMP unit has been approved under the Promotion of Electronic Components and Semiconductor Manufacturing (SPECS) program of the production.
Manwani said the company was selling semiconductors after importing them, but has now decided to dive into semiconductor packaging due to growth opportunities in the domestic market arising from government policies, geopolitical situation and the security concerns.
He said Sahasra Group had sold memory products for Japanese and American technology companies, but after they released memory products in India, the company started selling products under its own brand.
“The demand for memory products is identified. We will not only use the semiconductors for our captive consumption, but we will give them to brands that demand them. We have been one of the significant players in the memory segment. We provided USB sticks, SD cards and also SSDs for the IT segment,” Manvani said.
He said the total demand for semiconductors is around Rs 7,000-10,000 crore and the company is confident of securing 5-7% market share by 2025-2026.
“There is a huge demand for domestically produced products, both from original equipment manufacturers and the retail market. People are looking for domestically produced products as a result of fluctuations in the dollar,India-China standoff,US-China confrontation.People want an alternative source in China.We believe that customers will definitely appreciate the memory semiconductors made in the country,” Manvani said.
He said locally made memory products will be preferred by companies for security reasons, as memory products are also installed in data servers, high-end industrial PCs as well as communication equipment.
“Government and private organizations want these things to be made locally,” Manwani said.
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