Advanced System in Package Technologies (ASIP) and Korean firm APACT Limited set up a joint venture project to set up a semiconductor assembling and testing facility at the Electronics Manufacturing Cluster (EMC) in Hyderabad.

The OSAT (Outsourced Semiconductor Assembly and Test) facility project was formally launched by NITI Aayog member and former Director-General of DRDO V K Saraswat at an event organised at T-Hub in Madhapur.

To begin with, the OSAT facility will have 100 professionals.

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The OSAT market is pegged at $51.71 billion in 2023. It is expected to reach $ 76.23 billion by 2028, growing at a compounded annual growth rate of 8.07 p.c.

The OSAT and ATMP (Assembly Testing Marking and Packing) facility will serve India’s growing domestic needs, and provide an alternate supply chain to the global ecosystem.

“The facility will provide complete turn-key solutions (package design, bumping, assembly, testing, dropship). The facility would commence operations in 2025,” Venkata Simhadri, CEO of ASIP, said here on Wednesday.

“We help in assembling and testing of semiconductor chips that are fabricated at leading foundries around the world. The facility would strengthen the Electronics System Design and Manufacturing (ESDM) value chain and provide OSAT/ ATMP support locally,” he said.

ASIP and IIT Hyderabad signed an MoU to take up joint R&D in next generation packages, develop and qualify new packaging materials and develop skilled workforce for the OSAT industry.