Is India's Sanand Moment in Semiconductor's Coming?
Or are we too far from reality?
Okay, so today I finally came up with an idea,
because, honestly, not posting anything was just turning into a cycle of “researching & regrets” endlessly and writing nothing.
The idea of sitting down to write a full-blown blog didn’t feel practical with everything else going on. So, I’ve thought of journaling things instead. Just jot down what I’m reading and thinking, without overthinking it. I trust you won’t judge me for blurting out thoughts as they come — because if I don’t, I’ll end up researching for another three days and still have nothing to show for it (lol).
Today, I stumbled upon the story of Sanand’s transformation into an automobile hub by Tata Motors’ decision in 2008 to shift the Nano plant there, And this led to all the leading global automobile players like Toyota, Hyudai etc. to cluster their plants their, that transformed the whole lowkey region to a bustling industrial hub making India a leading player, attracting billions in investments.
Now, Could India’s semiconductor story see a similar turning point? Is the “sanand moment” of semicons near?
The parallels feel too strong to ignore. Back then, it was Tata betting big in uncertain times, setting the stage for an auto ecosystem in Gujarat. Today, Tata Electronics seems to be doing something similar — this time in semiconductors.
A $2.7 billion OSAT facility proposed in Jagiroad, Assam
An $11 billion semiconductor fab coming up in Gujarat
These are set to start functioning by the end of 2025, can be a turnaround.
& maybe, just maybe, This could very well be our Sanand moment — not for cars, but for chips.
For the longest time, India’s semiconductor strategy was basically: just import. We were comfortable relying on Taiwan, China, and others for close to 100% of our needs.
But that comfort has cracks now — with global supply chains getting shaky, tariffs rising, and US-China tensions making chips the new oil (and yes, I’ve read that line in way too many articles - and now pretty convinced it’s true).
Right now, we don’t have many Tatas in semicons. Adani has even expressed doubts, pointing out that India’s domestic chip demand (just 6.5% of the global pie) may not justify going all-in on fabs.
But there’s a cute little spot: OSAT
So, What’s OSAT Again?
OSAT stands for Outsourced Semiconductor Assembly and Testing. It’s not the shiny part of chipmaking that gets all the headlines (that’s the fabs and nanometers). But OSAT is where the real world happens — where bare silicon wafers get sliced, packaged, tested, and prepped for actual use.
Some key features that are advantageous for small & medium scale companies to capitalize on:
It needs lower capex than foundries
There’s less geopolitical baggage
And India has the talent + cost advantage to pull it off (We also got into a partnership with Japan to train human capital in semicon manufacturing)
Thing is, countries like Taiwan, Malaysia, and Vietnam have already captured major chunks of this OSAT value chain. Meanwhile, India — despite the potential — has lagged behind.
Recent Instances moving into this direction
Infineon (Germany) is partnering with CDIL Semiconductors in Mohali
CDIL will do the packaging, Infineon supplies the wafers. It's small, but it’s Infineon — a big name in power semiconductors.Onsemi (USA) is reportedly looking for an Indian partner to build an OSAT plant. They’re not putting in capex — just expertise and credibility. Smart hedge, considering their internal cost pressures and recent layoffs.
Alse, Tesla has signed a strategic sourcing deal with Tata Electronics from it’s upcoming Dholera fab?
Add to that:
Karnataka just approved a ₹3,425 Cr project for an electronics cluster in Mysuru
Tamil Nadu has set a goal to contribute 40% of India’s electronics exports via its 2024 policy (already leading with Foxconn and Pegatron)
Right now, we don’t need to build the next TSMC or chase end-to-end dominance.
Even Sanand didn’t start with a thriving auto ecosystem. It started with one bold move.
So, is this our Sanand moment? Or just another “almost” in the making?
That’s the thought that stayed with me today. Given the landscape, as far as what i read today, I think, If we can nail OSAT, and build a reputation there, it gives us a global importance in this space. (Tell me if i am too early to come to conclusions, but never mind, they’ll prolly refine)
Bye, Thank you for reading
-Abhishree (Who seems like fixated to osat nowadays!)