India's chip packaging plants start exporting, but scale, skills, and subsidies test the next phase

DIGITIMESOctober 8, 2026en

India's outsourced semiconductor assembly and test (OSAT) sector has moved from inaugurations to its first export shipments. The challenge now is scale. The new plants are small, still lean on foreign engineers and partners, and the government's second subsidy round offers less support for conventional packaging than the first. Japanese chipmakers are among the earliest customers, but they are spreading work across several Indian partners rather than building their own plants.

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