Advertisment

India set to become hub for ATMP facilities

author-image
CIOL Bureau
Updated On
New Update

NEW DELHI, INDIA: India is on course to become the hub of assembly-test-mark-pack (ATMP) facilities. While existing players are set to invest huge sums to expand their operations, new players are also showing interest in setting up ATMP units. ATMP facilities led the development of semiconductor ecosystem in countries like Taiwan and it could trigger the same effects in India as well.

Advertisment

Estimates suggest that global ATMP market serviced by third-party vendors is about $40 billion. It is set to clock 8 percent growth next year. We cater to only less than 1 percent of this market. With countries like Taiwan and South Korea saddled with problems of wage inflation, China unable to provide IP protection, India could become the hub of ATMP work," says SPEL Semiconductor CEO Sam Varghese. SPEL, considered to be the pioneer in the ATMP facility in India, has been operational for the last 12 years.

The company has a facility in Chennai and is looking at doubling its capacity. At present, we have the capacity to assemble and test over 420 million ICs a year. By January, we will increase the capacity by 30 percent at an investment of $5 million. We are also planning to invest another $20 million by August next year to double the capacity, says Varghese.

The $12.8-million firm is also looking at increasing its clientele. It has about 30 active clients and it provides turnkey solutions to them including sorting of wafers, testing, assembling and packaging. SPELs end customers include Sony, Samsung, Nokia and Motorola.

"After the capacity increase, our existing clientele will be able to provide us with 50 percent of the work and we expect the rest to come from new customers," he said. Bangalore-based Tessolve services, another post-fab services firm is also planning to expand its facility. As part of this plan, the company is looking at acquiring about 35 acres near the proposed 1,200-acre fab city in Hyderabad for setting up its third production house at an investment of over $50 million.

The company has an ATMP facility in Bangalore and is in the process of setting up a second facility in Chennai.