Maharashtra Enters Semiconductor Sector with Rs 12,000 Crore OSAT Facility in Navi Mumbai
Navi Mumbai, 19th September 2024: A new Outsourced Semiconductor Assembly and Testing (OSAT) facility was launched in Navi Mumbai on Wednesday, with Chief Minister Eknath Shinde, along with Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar, attending the inauguration. This marks Maharashtra’s first venture into the semiconductor industry, with RRP Electronics Pvt Ltd spearheading the project. The company plans to invest Rs 12,000 crore in the initial phase, followed by Rs 24,000 crore in the second phase, according to CM Shinde.
Fadnavis highlighted Maharashtra’s proactive approach, noting that while other states are still seeking investments, Maharashtra had already introduced its IT Policy in May of the previous year, offering attractive incentives. Shinde reaffirmed the government’s full support for the project, which includes cricket legend Sachin Tendulkar as a strategic investor.
Fadnavis emphasized the importance of establishing domestic semiconductor manufacturing facilities due to global supply chain vulnerabilities. He mentioned the recent approval of a joint venture between the Adani Group and Israeli firm Tower Semiconductor as a sign of increasing interest in the sector.
In response to claims from opposition parties about industries leaving Maharashtra, Shinde clarified that such shifts do not occur suddenly and attributed any challenges to previous administrations’ lack of support. He further stated that over 70% of the MoUs signed at the Davos summit had already been implemented. Rajesh Chodhankar of RRP Electronics mentioned that the first semiconductor chips are expected to hit the market by 2026, with phase one of the project set to create around 4,000 jobs.
The establishment of this OSAT unit is anticipated to draw more investments to the semiconductor industry and foster an ecosystem for advanced manufacturing in Maharashtra.
