Sahasra Semiconductors becomes first Indian firm to produce memory chips

Sahasra, a name derived from the Sanskrit word for "thousand" to signify the turn of the millennium, was established by an IIT Kanpur graduate in 2000.

Rajasthan-based Sahasra Semiconductors has started the commercial production of the first Made in India memory chips, surpassing even Micron. The company reportedly kicked off production at its semiconductor assembly, testing, and packaging unit located in Rajasthan's Bhiwadi district earlier this month.

Early this June, the US-based memory chip giant, Micron Technology, announced its plans to set up a semiconductor assembly and testing facility in Gujarat, with an estimated total investment of nearly Rs 22,540 crore.

Amrit Manwani, Sahasra Group Managing Director, said that the company achieved the distinction of being the first to sell "Made-in-India" micro-SD cards, and the products have received outstanding responses on e-commerce platforms, as cited in an Economic Times report.

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Moneycontrol could not independently verify the report.

Minister for Electronics and Information Technology Ashwini Vaishnaw, on October 27, expressed his optimism about India's potential to become a significant semiconductor manufacturing hub, highlighting the presence of a substantial talent pool in the country.

Sahasra, a name derived from the Sanskrit word for "thousand" to signify the turn of the millennium, was established by an IIT Kanpur graduate in 2000. The company's diverse operations underscore its role in supporting various aspects of the electronics and technology manufacturing sector.

In an interview with Moneycontrol earlier this month, Varun Manwani, Sahasra CEO, noted that the initial investment for the company is approximately Rs 350 crore as part of the first phase. Out of this, the company has already committed Rs 160 crore for plant and machinery. The second phase of investment is projected to be around Rs 190 crore and will be spread over a period of two to three years.

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Sahasra’s Bhiwadi unit is set to gradually increase its capacity to 30 percent by the end of this year and the company plans to fully realize its potential in the next phase, which is expected to start in early 2024. In the second phase, the company will initiate advanced packaging of products, including internal memory chips, expanding its semiconductor production capabilities further.

The company has gained approval under two key government initiatives to support semiconductor manufacturing in India. These initiatives include the production-linked incentive (PLI) programme for components and subassemblies of white goods, as well as the scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS).

Under SPECS, Sahasra is eligible to receive 25 percent of the capital expenditure for setting up or expanding its manufacturing facility, providing essential support for its semiconductor production endeavours.