Rajasthan Inaugurates First Semiconductor Cluster in Bhiwadi

Rajasthan’s first semiconductor cluster was inaugurated in Bhiwadi, Alwar district, on 15 May 2026. The facility is located in the Electronics Manufacturing Cluster at Salarpur, Khushkhera, and it was launched by Sahasra Semiconductors Pvt Ltd.

Semiconductor Manufacturing in India

Semiconductors are materials used in electronic devices for controlling electric current, and they are central to chips used in computers, mobile phones, automobiles, and industrial systems. India’s semiconductor ecosystem includes design, fabrication, assembly, testing, marking, and packaging, with ATMP and OSAT units forming part of the downstream manufacturing chain.

ATMP and OSAT Facilities

The Bhiwadi unit specialises in Assembly, Testing, Marking, and Packaging, also written as ATMP, and in Outsourced Semiconductor Assembly and Test, also written as OSAT. The facility includes memory products and has an annual packaging capacity of 60 million units. ATMP and OSAT units handle chip assembly after wafer fabrication and are used for final testing and packaging before distribution. These units are part of the semiconductor value chain and are distinct from wafer fabrication plants.

Electronics Manufacturing Cluster at Bhiwadi

The Electronics Manufacturing Cluster at Bhiwadi has planned investments of more than Rs 1,200 crore from 20 companies. The cluster is expected to generate employment for nearly 2,500 to 2,700 people. Bhiwadi is located near the Delhi-NCR region and falls in Alwar district of Rajasthan. Electronics manufacturing clusters are industrial zones created for shared infrastructure, logistics, and factory development.

Rajasthan Semiconductor Policy

The Rajasthan government introduced the Rajasthan Semiconductor Policy in March 2026. The policy aims to develop a semiconductor ecosystem in the state and to support manufacturing activity in the Delhi-NCR-linked industrial belt. Semiconductor policies in India generally cover land support, capital incentives, skill development, and infrastructure for chip-related industries. Several states have framed such policies to attract investment in electronics manufacturing.

Important Facts for Exams

• ATMP stands for Assembly, Testing, Marking, and Packaging.
• OSAT stands for Outsourced Semiconductor Assembly and Test.
• Rajasthan’s first semiconductor cluster is located in Bhiwadi, Alwar district.
• Electronics Manufacturing Clusters are industrial zones for electronics-related production units.

More than 60% of the facility’s production is already exported to the United States, Germany, France, Eastern Europe, China, and Nepal. The unit was inaugurated virtually on 15 May 2026 by Union Electronics and IT Minister Ashwini Vaishnaw and Rajasthan Chief Minister Bhajan Lal Sharma.