India's ASIP Technologies, which has partnered with the South Korean company APACT, has said it is close to receiving government approvals for its OSAT facility. This comes after the Indian government recently approved OSAT projects from Tata and CG Power and Industrial Solutions.
"In my opinion, we are very close to the approval," said Venkata Simhadri, founder and CEO of ASIP. "We are among the few critical applicants currently awaiting our approval, and I'd say we're on the verge of closing it."
The company anticipates its inaugural production line will be operational in 18 months.
Potential target customers
ASIP aims to target customers in the medium range. Simhadri believes the current market can accommodate multiple OSAT companies, indicating ample opportunity for growth and competition.
"Our strategy doesn't solely focus on smaller enterprises - instead, we aim to serve a broad customer base, primarily targeting medium-sized entities with strong R&D and design capabilities," Simhadri said. "Our mission is dynamic growth, akin to being on a treadmill where you must keep moving forward. Our ambition extends beyond operating a single factory - we plan to continually expand our footprint."
His recent position as the leader of a design services firm has enabled him to re-establish connections with numerous companies with which he has collaborated before.
"There's significant interest in our factory, particularly in the quality and reliability we promise to deliver," Simhadri said. "It's important to note that no semiconductor company, American or otherwise, will commit to us without first seeing our factory operational and passing their qualification processes."
ASIP is not just focused on the Indian market—it has set its sights globally. Semiconductor consumption in India is substantial, driven by demand for mobile phones, automobiles, and various electronic systems. Semiconductors are integral to these products, yet, as it stands, all such components are packaged outside of India before being imported.
"There's a significant demand for local semiconductor production, not just to meet domestic needs but as part of a broader global supply chain," Simhadri added. "The semiconductor industry is anticipated to reach a trillion-dollar valuation by 2030. This growth suggests ample opportunities exist for large and small players, each fulfilling specific roles within the supply chain. The diversity in requirements—from advanced technologies to specific automotive standards—indicates there's potential for many players to thrive."
Expectations from APACT partnership
The company's partnership with APACT has two primary reasons. First, the semiconductor sector is relatively new to India, with limited local expertise, manpower, and technology in this field. Recognizing this gap, the Indian government introduced the semiconductor incentive program, which supports semiconductor fabrication and mandates applicants to have a technology partner.
This requirement aims to mitigate risk by ensuring that partners have a strong track record in the semiconductor industry, and can contribute foundational technology and advanced capabilities.
Given the rapid evolution in semiconductor packaging technologies, such as 2D, 3D, system-in-package, silicon interposers, and chiplets, it's crucial to have a partner to navigate these advancements.
"We chose to partner with APACT after a careful selection process," Simhadri said. "Unlike other foreign companies that have focused more on consumer products in India, APACT has shown a willingness to engage deeply in technology development. They've committed to providing technology and training support, ensuring that our facility is up to global standards. This collaboration will focus on knowledge sharing and training, helping us to establish the factory, qualify it, and maintain support over the next three to four years to meet international benchmarks."
Meeting the talent requirements
A major concern regarding the expansion of India's semiconductor industry is the talent pool's readiness. Despite the abundance of engineers in the country, their employability does not always meet industry standards. Nonetheless, Simhadri is optimistic and confident that they will not encounter issues related to talent acquisition.
"I started a training institute in India a few decades ago," Simhadri said. "We trained, you know, probably a few thousand people and they're working all over the world. We will take a similar approach. We have the leadership, and the South Korean partner is willing to train people. We will have an exchange program with them."
