ATMP Route to Boost India’s Chip Manufacturing Ecosystem with Fab Success
As India takes a technological leap by launching a semiconductor ecosystem, setting up assembly, test, marking and packaging (ATMP) facilities will be its main focus in the coming years.
Although ATMP plants are not full-scale manufacturing units, they are instrumental in catalyzing the country’s goal of technological self-sufficiency.
An IT ministry official said, “In the semiconductor ecosystem, China has a 38 percent share of the global packaging market and India is following the ATMP path to great success. The right way forward is to use this phase as a starting point because it is crucial.”
Those with knowledge of how this ecosystem works said that while building full-scale production facilities requires significant investment, time and technical expertise, ATMP facilities provide a pragmatic starting point.
Mindgrove Tech founder TR Shashwath told ReturnByte that India first needs ATMP plants like the one announced by US chipmaker Micron Technology to be set up in Gujarat.
He said, “Since such facilities use and work on off-the-shelf semiconductor dies, there is no real generational limit to this either – we can have the most advanced ATMPs in India. Fabrication facilities (fabs) come last.”
“It’s because they are the most complex to install. Older technology nodes are installed first – 180nm, 130nm, etc., followed by newer technology factories (28nm, 7nm, 5nm, etc.). These are very difficult to install and expensive So we need time to get there, he added.
ATMP fabs focus on the latter stages of semiconductor production, which include the assembly, testing, marking and packaging of integrated circuits. Although these steps may not involve the complex process of creating semiconductor wafers, they are essential in turning semiconductor components into functional devices ready to be integrated into electronic products.
By initiating domestic assembly, testing and packaging processes, India can reduce its dependence on global supply chains and ensure consistent and reliable supply of essential semiconductor components. This resilience becomes crucial in times of global disruption, as seen during the recent chip shortage at the height of the pandemic.
Experts in the semiconductor industry believe that ATMP facilities will not only address immediate supply chain challenges, but also contribute to the innovation ecosystem. They provide a platform for cooperation between local actors, research institutes and technology companies.
This collaborative environment promotes knowledge sharing, skill development and the creation of domestic technologies that could potentially lead to breakthroughs in semiconductor manufacturing. In addition, the presence of ATMP facilities promotes skill development as technicians and engineers gain hands-on experience with cutting-edge semiconductor technologies.
In other words, ATMP facilities can lay the foundation for the development of a comprehensive semiconductor ecosystem in India. As these facilities develop and mature, they can act as a springboard towards establishing full-scale fabs. The knowledge, expertise and infrastructure gained from ATMP operations can significantly facilitate the transition to more complex semiconductor manufacturing processes in the future.
In addition, the presence of ATMP plants not only attracts investment from global semiconductor companies, but also fuels domestic semiconductor startups. The supportive ecosystem created by these plants can encourage startups to develop innovative solutions and products that serve both domestic and international markets.
So one must understand that with innovation, job creation and sustainability at the core, ATMP plants hold the promise to shape the Indian semiconductor landscape in the years to come.
