Pune: Rajendra Chodankar, President of RRP Electronics, announced that the state’s inaugural semiconductor chip production factory will start operating on September 16.

This marks the state's first venture using the Outsourced Semiconductor Assembly and Testing (OSAT) system. The project, which was inaugurated in Navi Mumbai in March, aims to reduce reliance on imported semiconductor chips.

During the Semiconductor Ecosystem Conference held at the Maratha Chamber of Commerce, Industries, and Agriculture (MCCIA) in Pune, Chodankar emphasized the critical need for domestic semiconductor chip production. He mentioned that currently, India imports semiconductor chips from Taiwan and South Korea.

The new facility, spread over 45,000 square feet, received substantial grants from the state government and is expected to be fully operational by September.

Chodankar detailed the significant support from HMT Microelectronics in Switzerland, which will supply the necessary semiconductor wafers. He expressed optimism that the project would create numerous self-employment opportunities within the state.

Understanding OSAT Technology

OSAT technology involves the use of semiconductor wafers to develop semiconductor chips. The creation of these wafers requires highly sophisticated and advanced foundries, which India currently lacks. However, until such foundries are established domestically, chip development factories are being set up in key cities across India.

This initiative is expected to decrease the country's dependence on foreign imports by at least 25 per cent and eventually pave the way for establishing domestic semiconductor foundries, thus boosting job creation.

Rajendra Chodankar, President, RRP Electronics Limited said, "The first semiconductor production factory using OSAT technology in the state is set to commence operations in September. The state government is allocating land in Talode for establishing a foundry to develop semiconductor wafers."