Sahasra Semiconductors Opens Rajasthan's First Chip Plant

Rajasthan Enters India's Semiconductor Map

Sahasra Semiconductors, an Indian semiconductor packaging and electronics manufacturer, inaugurated Rajasthan's first semiconductor assembly, test, marking and packaging facility in Bhiwadi on May 15, 2026, making it India's 13th semiconductor node and the first small and medium enterprise-led chip manufacturing unit to begin commercial semiconductor production in the country. The plant was developed under the Ministry of Electronics and IT's SPECS (Scheme for Promotion of Manufacturing of Electronic Components & Semiconductors) scheme with a total investment of over ₹150 crore, significantly smaller than ISM-backed facilities but notable for demonstrating that OSAT operations are viable at SME scale.

Facility Specifications and Products

The Bhiwadi facility spans 57,000 square feet and includes advanced Class 10K and Class 100K cleanrooms, providing manufacturing environments suitable for packaging semiconductor devices across multiple product categories. Current production covers memory chips used in Micro SD cards and flash storage devices, LED driver integrated circuits, embedded SIMs (eSIMs), and RFID inlay products. The plant's annual packaging capacity stands at 60 million semiconductor units, with a scale-up plan targeting 400 to 600 million units annually over the next two to three years as the facility expands cleanroom area and installs additional bonding and test equipment.

Already Exporting

More than 60 percent of the Bhiwadi plant's production is currently being exported to international customers in the United States, Germany, France, Eastern Europe, China and Nepal, a striking export ratio for a facility that has barely opened. This early export profile reflects Sahasra's existing customer relationships developed through its broader electronics manufacturing business and suggests that international buyers are willing to source from a new Indian packaging facility when it meets quality and delivery standards.

Rajasthan's Semiconductor Policy

The inauguration of the Bhiwadi plant coincided with Rajasthan's introduction of its Rajasthan Semiconductor Policy in March 2026, which formally positions the Bhiwadi-Khushkhera belt near Delhi-NCR as a major electronics and semiconductor manufacturing hub. The policy provides land allocation support, electricity tariff benefits, water supply guarantees, and streamlined environmental and building clearances for semiconductor manufacturing projects in the designated zones, competing with Gujarat's well-established incentive framework.

SME Semiconductor Manufacturing: Proof of Concept

Sahasra's Bhiwadi plant is significant beyond its own production targets because it demonstrates that semiconductor packaging can be commercially viable for Indian SMEs, not just for large corporations or multinational joint ventures. The ₹150 crore investment scale is accessible to a much larger pool of Indian industrial companies than the ₹3,300 crore Kaynes Semicon plant or the ₹7,600 crore CG Semi investment, opening the door for a broader base of domestic semiconductor manufacturing participants.

What It Means for India's Chip Ecosystem

For India's semiconductor ecosystem, the Bhiwadi plant adds geographic diversity beyond the Gujarat cluster and proves that SPECS-scheme incentives can mobilise SME investment in semiconductor manufacturing, validating a policy design that complements the larger ISM-backed mega-projects with a more accessible entry point for domestic capital.