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The India Semiconductor Packaging Market sees surging demand due to robust government support via the India Semiconductor Mission (ISM), offering up to 50% fiscal incentives for OSAT facilities, alongside the Production Linked Incentive (PLI) scheme. Tata Electronics' partnerships with ROHM for automotive chip packaging and Intel for advanced solutions bolster local capabilities. NXP's USD 1 billion investment further enhances R&D and supply chain resilience.

Rising needs in consumer electronics, 5G rollout, EVs, and ADAS drive demand, with the market valued at USD 3,193.7 million currently. Collaborations like Tata-Merck MoU for materials and 10 approved ISM projects across states accelerate advanced packaging like 2.5D/3D ICs. Localization efforts reduce import reliance, positioning India as a global hub.

Key Market Trends & Insights:

India's semiconductor packaging market sees rapid evolution through advanced technologies and government-backed initiatives. Key trends emphasize performance enhancement, localization, and integration for sectors like AI, EVs, and 5G.

Advanced Packaging Adoption

Advanced packaging technologies like fan-out wafer-level packaging (FOWLP) and system-in-package (SiP) drive miniaturization and efficiency. Kaynes Semicon partners with Lightspeed for LightSiP technology, enabling high-volume production for AI and IoT devices. These solutions integrate multiple chips, boosting power efficiency and meeting demands in consumer electronics and high-performance computing.

2.5D and 3D Integration

2.5D and 3D packaging stack chips vertically using Cu-to-Cu hybrid bonding for superior signal integrity and thermal management. Indian firms adopt these for AI chips and data centers, reducing interconnect distances. Research from IIT Madras advances cost-effective solutions, supporting EVs and ADAS systems with enhanced reliability.

Government Incentives Expansion

India Semiconductor Mission (ISM) and PLI schemes attract investments like NXP's USD 1 billion for R&D in packaging. These policies foster OSAT facilities and localize supply chains for automotive and 5G applications. Collaborations with global players like TSMC strengthen domestic capabilities.

Automotive Sector Demand

Rising EV and ADAS needs propel SiP and advanced thermal packaging for power efficiency. Packaging innovations ensure chips meet automotive safety standards in infotainment and sensors. This trend accelerates with India's EV transition, creating value chain opportunities.

5G Connectivity Push

5G rollout boosts high-bandwidth packaging for base stations and smartphones, integrating RF, logic, and memory. Fan-out technologies enable low-latency edge computing in IoT devices. Deployments across India amplify demand for efficient, miniaturized solutions.

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