Assembly, test, marking and packaging (ATMP/OSAT) plants that turn wafers into finished chips - where India's chip manufacturing actually started in 2026.
Note: Chip packaging via Kaynes Semicon; components via ECMS
Market cap, ratios, CAGR and revenue: company table snapshot as of 30 Oct 2026 (the same figures on every page). Price: snapshot as of 30 Oct 2026. Not investment advice.
Where it fits
Wafers are sawn into individual dies, attached to a substrate, wired with fine gold or copper bonds, sealed in plastic and tested. OSAT plants cost far less than fabs (₹3,000-27,000 Cr here vs ₹91,000 Cr for Tata's fab) and start sooner, which is why most Semicon 1.0 projects are OSATs.
Why it matters
Five Semicon 1.0 plants are in commercial production: Micron (Sanand, Feb 2026), Kaynes (Sanand, Mar 2026), CG Semi (Sanand, inaugurated 4 Jul 2026), CDIL (Mohali) and Suchi (Surat, both Sep 2026). Tata's Assam plant began pilot production in Oct 2026. Semicon 2.0 keeps funding this layer: 25% of capital cost for legacy packaging and 35% for advanced packaging, for projects of at least ₹1,000 Cr.
Where the value pool sits
Global OSATs earn high single-digit to low-teens operating margins at scale, but new plants run at a loss until volumes build. Value is in utilisation and customer qualification (automotive chips can take 1-2 years to qualify). For listed parents (CG Power, Kaynes) the units are small today relative to the group.
Key drivers
Indian demand from phones, cars, power electronics and defence
China+1 diversification by global chip companies
Phones assembled in India using Indian-packaged chips (MPMS sourcing logic)
Potential bottlenecks
Customer qualification time, especially for automotive chips
Substrates, lead frames and gold wire are imported
Lower capital support under Semicon 2.0 (25-35%) than under Semicon 1.0 (50% from the Centre)
Investor metrics to watch
Chips per day shipped vs nameplate capacity
Number of qualified customers
OSAT unit losses or profits disclosed by CG Power and Kaynes