Electronics firm Sahasra Semiconductors has said it expects to become the first company to set up a memory chip assembly, test and packaging unit in the country and start selling locally-made chips by December.
Sahasra Semiconductors chairman and managing director Amrit Manwani told PTI that the company plans to invest a total of ₹750 crore in setting up the unit at Bhiwadi in Rajasthan.
Operations & revenue
"We will invest ₹150 crore in this financial year for setting up the ATMP facility in 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 touch revenue in the range of ₹250-300 crore then we will again invest ₹600 crore. In total, we plan to invest ₹750 crore initially," Manwani said.
He said that the first full financial year of the company's commercial production is expected to generate a revenue of around ₹50 crore, which is expected to grow to ₹500 crore by 2025-26.
Semiconductors are converted into a complete product ready for sale at ATMP (Assembly, Testing, Marking and Packaging) units. It is the next step after the wafers or chips are produced at a fabrication plant. Manwani said the company has already invested ₹60 crore in the current fiscal and by March 2023 it will complete the investment of ₹75 crore. The remaining ₹75 crore will be invested in 2023-24. The company has largely invested in buying equipment and setting up clean room facilities required for semiconductor packaging.
Demand for memory products & semiconductors
"The demand for memory products is identified. We will not only utilise the semiconductors for our captive consumption but will give out to brands who demand for it. We have been one of the important players in the memory segment. We have been supplying pen drives, SD cards and also solid state drives for the computer segment," Manvani said.
He said the total demand for semiconductors is around ₹7000-10,000 crore and the company is confident of garnering a 5-7 per cent market share by 2025-26.
"There is huge demand coming for domestically made products both from original equipment makers and the retail market. People are looking for domestically made products in the wake of dollar fluctuation, India China stand-off, and the US-China stand-off. People want an alternate source to China. We believe customers will definitely welcome domestically manufactured memory semiconductors," Manvani said.
He said that locally manufactured memory products will be preferred by companies for security purposes as memory products are also installed in data servers, high-end industrial PCs as well as in communication equipment.
"Both the government and private organisations desire that these things should be locally manufactured," Manwani said.