Rajasthan Enters India’s Chip Race: Sahasra Semiconductor Facility Launched in Bhiwadi

Union Minister Ashwini Vaishnaw has virtually laid the foundation stone for the Sahasra Semiconductor facility in Bhiwadi, Rajasthan, marking the state’s formal entry into India’s semiconductor ecosystem with projects worth over ₹400 crore. This SME-led chip packaging plant is India’s first of its kind and is expected to scale production to 400–600 million units annually within the next 2–3 years.

Key Highlights of the Sahasra Semiconductor Facility

Rajasthan now joins Bharat’s Semiconductor journey ✅ pic.twitter.com/eru9D7DQyr

— Ashwini Vaishnaw (@AshwiniVaishnaw) May 15, 2026

• Location: Bhiwadi, Rajasthan
• Investment: Over ₹150 crore for the ATMP/OSAT facility; part of ₹400 crore industrial projects
• Scale: 57,000 sq. ft. facility with Class 10K and 100K cleanrooms
• Initial Capacity: ~60 million semiconductor units annually
• Future Capacity: 400–600 million units within 2–3 years
• Exports: Already shipping over 60% of output to the US, Germany, France, Eastern Europe, China, and Nepal. 

Strategic Importance

• Geopolitical Significance: Vaishnaw emphasized that semiconductors are globally critical, and Rajasthan now has a place in this high-tech supply chain.
• Government Support: Driven by the India Semiconductor Mission (ISM) and Production Linked Incentive (PLI) schemes, which have already approved 75 projects worth ₹61,000 crore.
• Tech Advancements: India is now designing 2nm and 3nm AI chips and manufacturing high-bandwidth memory domestically.

Products Manufactured

• Memory chips (Micro SD, flash storage)
• LED driver ICs
• eSIMs
• RFID components

Impact on India’s Semiconductor Ecosystem

• Diversification: First SME-led semiconductor packaging unit, decentralizing manufacturing beyond traditional hubs.
• Exports: Strengthens India’s role in global supply chains.
• Employment: Thousands of jobs expected in Rajasthan’s electronics cluster.
• Economic Growth: Electronics output in India has expanded six-fold in 12 years to ₹13 lakh crore, with exports at ₹4.24 lakh crore.

What This Means for India

This facility is a milestone in India’s semiconductor journey, complementing larger fabs and advanced packaging units in Odisha and Gujarat. It signals India’s transition from being seen as a “question mark” in chip manufacturing to a credible global player.