India’s OSAT Ambitions: Flying High or a Flight Risk?

By Yashasvini Razdan, EETimes | May 19, 2025

Until a few years ago, semiconductors were the nerds of the tech class—omnipresent yet inconspicuous. But over the past decade, and especially since the global chip shortage, the spotlight has finally landed on the backbone of the modern tech economy. India, long known for its IT services, wants in on the hardware action.

Government subsidies are pouring in, timelines are being set and large players are building facilities in India that aim to rival Southeast Asian giants.

The Indian government has formally approved four OSAT/ATMP (assembly, testing, marking and packaging) units and one full-fledged fabrication facility under the Semicon India Program, spearheaded by the India Semiconductor Mission. The goal is clear: to become a meaningful player in the global semiconductor supply chain. Collectively, these projects represent a cumulative investment of ₹1.52 (approximately $18.2 billion) and are expected to be completed over the next four to six years.

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