Rajasthan opens first semiconductor packaging facility in Bhiwadi with 60M unit annual capacity

INDIA – Rajasthan has inaugurated its first semiconductor ATMP facility in Bhiwadi, a 57,000-square-foot plant packaging 60 million units annually of memory chips, eSIMs, and RFID products, with plans to scale to 600 million units within three years.

Union Minister Ashwini Vaishnaw described the event as a historic milestone for Rajasthan’s entry into the semiconductor sector, noting that India’s electronics manufacturing production has grown sixfold over 12 years to nearly INR13 lakh crore (approximately US$156 billion), while exports increased to around INR4.24 lakh crore (approximately US$51 billion). 

Mobile phones have become India’s top export commodity, he added.

Packaging as the Final Value Step

Semiconductor packaging, enclosing a chip in a protective casing with electrical connections, is often the final and most labour-intensive stage of chip production. 

Unlike wafer fabrication, which requires ultra-high precision and multi-billion-dollar facilities, ATMP operations can be established at lower cost while still adding significant value. 

The Sahasra facility’s cleanrooms (Class 10K and 100K) maintain the particle-controlled environments necessary to prevent contamination during assembly. 

More than 60 percent of production is exported to the United States, Germany, France, Eastern Europe, China, and Nepal.

An Electronics Manufacturing Ecosystem

The Electronics Manufacturing Cluster developed by ELCINA spans 50.3 acres with a project cost of INR46.09 crore (approximately US$5.5 million), including INR20.24 crore in government support. 

The cluster has attracted planned investments exceeding INR1,200 crore (approximately US$144 million) from 20 companies involved in semiconductor packaging, electronic components, RFID technologies, EV parts, and industrial electronics. 

Eleven companies are currently operational with cumulative investments exceeding INR900 crore (approximately US$108 million) and employment generation of more than 2,700 workers.

Chief Minister Bhajan Lal Sharma noted that Rajasthan introduced its Semiconductor Policy in March 2026 to develop the region near Delhi NCR into a manufacturing hub.

From Automotive to Semiconductors

Union Minister Bhupender Yadav added that Bhiwadi, previously associated mainly with the automotive sector, is now expanding into semiconductor and electronics manufacturing. 

The facility is expanding into semiconductor product R&D, including LED driver chips, while supporting workforce training programs in semiconductor packaging and advanced manufacturing through collaborations with technical institutes and industry organizations.

When Chips Get Their Protective Shell

A semiconductor wafer is not a finished product until it is packaged, tested, and protected. Rajasthan’s first ATMP facility turns bare chips into export-ready components. 

For India’s electronics supply chain, that packaging step is not incremental, it is the difference between raw material and finished goods.

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