Rajasthan's first semiconductor plant inaugurated at Bhiwadi EMC
Synopsis
Key Takeaways
Rajasthan formally entered India's semiconductor ecosystem on Friday, 15 May with the virtual inauguration of the state's first semiconductor plant and a major Electronics Manufacturing Cluster (EMC) at Bhiwadi, as the Centre accelerated its push to establish India as a global electronics and chip manufacturing destination.
Union Minister Ashwini Vaishnaw virtually inaugurated two landmark facilities: the Electronics Manufacturing Cluster developed by ELCINA at Salarpur in Khushkhera, Bhiwadi, and the semiconductor ATMP/OSAT facility of Sahasra Semiconductors. The twin inauguration marks a significant milestone for a state that has historically been associated with textiles and tourism rather than high-technology manufacturing.
What Vaishnaw Said
Addressing the gathering, Vaishnaw described the occasion as a historic moment for Rajasthan, noting the state's formal entry into the strategically critical semiconductor sector. He highlighted India's rapid rise in electronics manufacturing over the past 12 years, pointing out that production has scaled six-fold to nearly ₹13 lakh crore, while exports have climbed to approximately ₹4.24 lakh crore.
'Mobile phones have now emerged as India's top export commodity,' Vaishnaw stated, crediting the growth to initiatives including Make in India, Digital India, and Atmanirbhar Bharat launched under Prime Minister Narendra Modi. He also pointed to schemes such as the Electronics Component Manufacturing Scheme (ECMS), the India Semiconductor Mission (ISM), and Production-Linked Incentive (PLI) programmes as key pillars of the country's chip ecosystem, built in partnership with state governments and industry.
Rajasthan's Semiconductor Push
Rajasthan Chief Minister Bhajan Lal Sharma said the state government had introduced the Rajasthan Semiconductor Policy in March 2026 and is actively working to transform the Delhi-NCR border region into a manufacturing hub. Union Minister Bhupender Yadav noted that Bhiwadi, long known for automobile manufacturing, is now emerging as a centre for semiconductor and electronics industries as well.
Cluster Details and Government Investment
The Bhiwadi Electronics Manufacturing Cluster has been developed across 50.3 acres at a total project cost of ₹46.09 crore. The central government provided direct support of ₹20.24 crore under the EMC scheme, with the balance mobilised through other stakeholders. The cluster is designed to attract downstream electronics units that can plug into the semiconductor supply chain anchored by Sahasra Semiconductors' ATMP/OSAT facility.
Broader Context and What It Means
This inauguration comes amid a broader national effort to reduce India's dependence on imported chips, which currently account for a substantial share of the country's electronics import bill. The India Semiconductor Mission, launched in 2021 with an outlay of ₹76,000 crore, has been the policy backbone for attracting global and domestic chip investment. Rajasthan's entry into this ecosystem — particularly through an ATMP/OSAT facility, which handles the assembly, testing, marking, and packaging of chips — represents a realistic near-term pathway for India, given that full-scale fabrication requires far greater capital and technology depth. Notably, Bhiwadi's proximity to Delhi-NCR gives it a logistical advantage for both talent access and supply-chain connectivity. With the state's dedicated semiconductor policy now in place, more investment announcements from the region could follow in the near term.