Outside the ISM: How Rajasthan’s Bhiwadi Commissioned India’s 13th Semiconductor Unit

Rajasthan is transitioning to a high-tech node with the launch of its first semiconductor plant on May 15, 2026. Developed under the federal SPECS framework, this unit introduces India’s 13th semiconductor unit, diversifying the national chip landscape alongside India Semiconductor Mission (ISM) projects.

Rajasthan formally entered India’s semiconductor manufacturing ecosystem in 2026 with the inauguration of the state’s first semiconductor facility at Bhiwadi. This is a strategic expansion of India’s domestic electronics and chip supply chain capabilities.

The new semiconductor ATMP/OSAT facility was inaugurated on May 15, 2026.

This additional unit broadens India’s strategy to deepen semiconductor localization. It also strengthens domestic electronics manufacturing capacity and reduces supply chain dependence on strategically critical technologies.

This has been set up under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).

Rajasthan semiconductor: Technical specifications and operational capacity

Sahasra Semiconductors, an Indian semiconductor packaging and electronics manufacturer, will operate the newly inaugurated facility.

According to the central government announcement, the company will undertake semiconductor assembly, testing, marking, and packaging (ATMP/OSAT) operations at the unit.

The Bhiwadi semiconductor facility has the following operational capabilities:

• Infrastructure: The ATMP/OSAT facility operates from a 57,000-square-foot complex equipped with Class 10K and Class 100K cleanroom infrastructure to support semiconductor packaging operations.
• Investment: The Bhiwadi semiconductor project has attracted total capital investment exceeding INR 1.5 billion.
• Product portfolio: The facility will focus on packaging and assembling memory chips, MicroSD cards, flash storage products, LED driver ICs, eSIMs, and RFID devices.
• Production capacity: The company has set an initial annual packaging capacity of 60 million units, with an additional 43 million units supported under the SPECS framework. Over the next two to three years, the company plans to expand annual production capacity to between 400 million and 600 million units.

Currently, the facility exports around 60 percent of its production to international markets, including the United States, Germany, France, Eastern Europe, China, and Nepal.

Rajasthan’s electronics infrastructure receives a major boost

A major component of Rajasthan’s semiconductor and electronics strategy is the Electronics Manufacturing Cluster (EMC) at Salarpur, Khushkhera, in the Bhiwadi region. The cluster spans approximately 50.3 acres and has attracted a total project investment of INR 460.9 million, including central government support of INR 202.4 million under the EMC scheme.

ELCINA, formally known as the Electronic Industries Association of India, has implemented the project through a special purpose vehicle (SPV) in collaboration with MSME industry participants. The cluster includes logistics infrastructure, testing facilities, and training centers.

Its proximity to the Delhi-NCR region and connectivity through road, rail, and air networks are expected to improve access to manufacturing supply chains and export markets.

Investment activity in Rajasthan electronics cluster

According to official estimates, India’s EMC has attracted proposed investments exceeding INR 12 billion from nearly 20 companies. These entities are involved in semiconductor packaging, electronic components, RFID technologies, EV components, industrial electronics, and consumer electronics manufacturing.

Currently, 11 companies operate within the Salarpur cluster, with cumulative investments exceeding INR 9 billion and employment generation for more than 2,700 workers.

Companies operating within the ecosystem include Aisan Fiem Industries, E-Pack Durable, Sahasra Semiconductor, Sahasra Electronics, Varada Green Energy, Duggar Power Products, and Electronics Sector Skills Council of India.

The growing concentration of electronics and semiconductor-related companies within a single industrial cluster is expected to strengthen supply chain integration and localized manufacturing activity.

Expanding state appeal beyond automotive manufacturing

Historically known for automotive and industrial manufacturing, the Bhiwadi region is steadily diversifying into electronics and semiconductor manufacturing, supported by its strategic integration with the Delhi-NCR ecosystem.

This transition aligns with the rapid expansion of India’s electronics sector, where domestic production has increased sixfold over the past decade to nearly INR 13 trillion, while exports have reached approximately INR 4.24 trillion. Mobile phones have also emerged as one of India’s largest export categories.

Against this backdrop, the Rajasthan government has intensified efforts to attract semiconductor and electronics investments. In March 2026, the state introduced the Rajasthan Semiconductor Policy to position the Bhiwadi–Khushkhera belt near Delhi-NCR as a major electronics and semiconductor manufacturing hub.

CLICK HERE: India’s Semiconductor Sector: Tracking Government Support and Investment Trends

Rajasthan semiconductor policy 2026

In March 2026, the state government introduced a semiconductor policy to attract investment and strengthen its semiconductor and electronics manufacturing ecosystem. The policy covers semiconductor research, design, manufacturing, testing, and packaging activities, with a particular focus on OSAT, ATMP, and sensor manufacturing.

This initiative also proposes dedicated semiconductor corridors across the Jodhpur–Pali–Marwar region and other industrial clusters. Furthermore, the state policy includes infrastructure development, land allocation, and single-window clearance mechanisms.

To attract investors, Rajasthan’s semiconductor policy offers incentives such as exemptions on electricity duty, stamp duty, and land conversion charges. The initiative also includes capital subsidies under the India Semiconductor Mission (ISM).

Semiconductor units in India as of May 2026

As of May 2026, India has approved 12 semiconductor units under the ISM, spanning semiconductor fabrication plants, ATMP/OSAT facilities, compound semiconductor units, and advanced packaging projects. These projects are distributed across Gujarat, Uttar Pradesh, Assam, Odisha, Punjab, Andhra Pradesh, and Rajasthan, with cumulative proposed investments exceeding INR 1.6 trillion.

Source: India Briefing

It must be noted that the Sahasra Semiconductors Bhiwadi facility operates outside the main ISM-approved project list and was developed under the SPECS scheme.

Strategic relevance

The Rajasthan project reflects India’s broader semiconductor strategy to develop domestic packaging, testing, and electronics manufacturing capabilities alongside large-scale semiconductor fabrication proposals.

ATMP and OSAT facilities perform assembly, testing, marking, and packaging functions within the semiconductor value chain, serving as a critical intermediary link between wafer fabrication and downstream electronics manufacturing.

In this context, the Bhiwadi cluster demonstrates India’s efforts to build an integrated semiconductor and electronics manufacturing ecosystem through industrial infrastructure, MSME participation, workforce development, and export-oriented production.

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