Continental Device India Pvt Ltd (CDIL), India's most established semiconductor company, which shifted its focus away from wafer fabrication 15 years ago, is contemplating the possibility of establishing its own fabrication facility in India in the long run. A senior executive from the company revealed this vision, provided that a supportive ecosystem is established within the country. In the meantime, CDIL is concentrating on its local ATMP (assembly, testing, marking, and packaging) business, planning to expand its current production capacity of 500 million units by an additional 100 million units.

The company intends to leverage the Indian government's production-linked incentive (PLI) scheme and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) to initiate two new ATMP lines. Prithvideep Singh, General Manager at CDIL Semiconductors, shared this information during an interview.

Singh stated, "We will be augmenting our capacity by 100 million units. The initial phase of this plan has already been implemented, with the first 50 million units expected within the next six to eight months, followed by an additional 50 million units." He is the grandson of Gurpreet Singh, who, in collaboration with Continental Device Corp. of Hawthorne, California (later known as Teledyne Semiconductor Co.), commenced silicon chip and device production under the CDIL brand in 1964.

CDIL's expansion plans come shortly after global player Micron announced its intention to establish an ATMP unit in India, with an investment exceeding $800 million over five years. However, Singh did not disclose the specific investment figures for CDIL's capacity expansion.

Regarding the possibility of CDIL building a fabrication facility in India, Singh acknowledged that the company was considering it, given its prior expertise in the field. However, he emphasised that such a decision would depend on various factors.

Singh explained, "It's something we're considering. We would love nothing more than to have two to six assembly lines in India and then have a wafer fab which could supply products to them. Right now, if we set up a wafer fab, we will take what we take internally for our products and then somewhere, we'd have to have the rest of the capacity."

He also highlighted the reliance on imported raw materials for fabrication and ATMP manufacturing, including chemicals, moulding equipment, and epoxies. Additionally, he noted that essential local infrastructure and service teams required to process these raw materials were currently lacking.

Over the next 12 to 18 months, CDIL's primary focus will be scaling up its ATMP lines. Singh emphasised that expecting a single company to shoulder the responsibility for the entire ecosystem's development is unrealistic. Therefore, CDIL aims to expand its ATMP lines and capitalise on its strong foundation, brand recognition, and global presence to increase its market share and product portfolio.

CDIL's current product portfolio includes discrete semiconductor devices such as transistors, diodes, rectifiers, Schottky diodes, thyristors, voltage regulators, transient voltage suppressors, and MOSFETs. The company specialises in power semiconductors and high-reliability components used predominantly in the power electronics sector. These components play a crucial role in manipulating current and voltage for equipment requiring high power, such as those used in the automotive and aerospace industries.

Although CDIL previously operated one of India's first silicon chip fabrication units until 2008, it transitioned to a fab-less model, designing chips in India and outsourcing fabrication elsewhere. Singh attributed this shift to the influx of low-cost imports following liberalisation, which negatively impacted many Indian-owned brands and companies.

CDIL subsequently shifted its focus to assembly, testing, and packaging, establishing over 12 production lines capable of manufacturing 500 million units annually. Singh mentioned the establishment of an advanced high reliability (HiRel) and testing laboratory in Mohali, in addition to its NABL-accredited facility in Delhi. The HiRel laboratory plays a crucial role in qualifying CDIL's devices for demanding sectors such as automotive, defense, and aerospace.

Singh noted CDIL's historical significance as the first company to supply to the Indian Space Research Organisation, the pioneer silicon company in India, and the initial exporter of semiconductors. While CDIL exported 70% of its products to countries such as the United States, the United Kingdom, Germany, China, Hong Kong, Japan, South Korea, South Africa, and Egypt until 2015, the rising local production of electronics since 2016 has shifted the balance, with approximately 65% of CDIL's current production now consumed locally.

CDIL's expansion in India aligns with increasing local and global demand. India's status as a cost-effective manufacturing destination for electronics and semiconductors, coupled with government incentives, subsidies, and a substantial domestic market, has prompted the need for capacity expansion.

Singh highlighted the government's role in promoting domestic consumption through localisation and indigenisation clauses in various tenders, such as E-meters and LED lights. This favorable environment has encouraged CDIL to seize the opportunity and expand its production capabilities in India.