What is the funding framework supporting this expansion?

The growth is supported by the India Semiconductor Mission, including a $13.5 billion financial commitment allocated under the ISM 2.0 program.

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#Manufacturing

SEMICON India 2026: Five Active Packaging Plants Expand Regional Manufacturing Options

Q: What kind of semiconductor facilities are currently operational in India?

The initial wave consists primarily of back-end assembly, test, marking, and packaging (ATMP) and OSAT lines rather than front-end wafer fabrication.

Originally published as: SEMICON INDIA 2026: India Starts Packaging Chips as Ecosystem Takes Shape

EE TimesPublished 2 weeks ago

AI overview

The operational launch of five domestic packaging plants gives hardware buyers an expanding geographical option for supply chain diversification.

At the SEMICON India 2026 conference, leadership confirmed that five domestic semiconductor packaging and testing facilities have successfully transitioned into commercial production. This milestone moves the country past initial memorandum signatures and into active operational capability, backed by a planned $13.5 billion outlay for the second phase of the India Semiconductor Mission (ISM 2.0).

For hardware engineers and supply chain managers, the maturation of these back-end assembly, test, marking, and packaging (ATMP) and OSAT lines broadens global sourcing geography. While wafer fabrication remains largely anchored elsewhere, the expansion of local packaging capacity offers relief valves for automotive, industrial, and consumer components requiring scalable regional finishing.

Looking ahead, hardware teams should monitor qualification timelines and quality certifications as these new facilities scale output for international export. Evaluating these emerging packaging lines can help mitigate single-region bottlenecks in supply chain risk assessments.

Questions & answers

Prime Minister Narendra Modi announced that five chip assembly and packaging plants have moved into commercial production.

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