News Stocks RRP Group Plans ₹12,000 Crore Semiconductor Fab Expansion in Panvel with Government SupportRRP Group Plans ₹12,000 Crore Semiconductor Fab Expansion in Panvel with Government Support
RRP Group is planning a ₹12,000 crore semiconductor fabrication facility on 100 acres in Panvel, near Mumbai, with 50% government land subsidy. The company, which commissioned its first facility in September 2024, has strategic investor Sachin Tendulkar and plans 5-7 OSAT lines focusing initially on automotive applications. The first prototype chip for thermal imaging is expected by next quarter, with full production targeted for 2027 under India's semiconductor mission.
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RRP Group is embarking on a major semiconductor expansion with plans for a ₹12,000 crore fabrication facility in Panvel, near Mumbai, as part of India's semiconductor mission under the Make in India initiative. Chairman and CEO Rajendra Chodankar outlined the company's ambitious growth strategy during the World Economic Forum 2026 in Davos, emphasizing that semiconductors have evolved from luxury items to basic necessities in today's technology-driven world.
Government Support Drives Semiconductor Entry
The Indian government played a decisive role in RRP Group's entry into the semiconductor space through comprehensive policy support and financial incentives. Chodankar credited the government's attractive subsidy structure for providing the confidence needed to invest in expensive machinery and infrastructure required for semiconductor manufacturing.
| Milestone | Details |
|---|---|
| Facility Commissioning | September 2024 |
| Development Timeline | 14 months |
| Location | Maharashtra |
| Government Role | Policy support and financial incentives |
The company successfully commissioned its first semiconductor facility in Maharashtra in September 2024 after approximately 14 months of development work, marking a significant milestone in India's domestic semiconductor capabilities.
Strategic Investment from Sachin Tendulkar
RRP Group received an unexpected boost when cricket legend Sachin Tendulkar joined as a strategic investor. Tendulkar, who was already associated with the RRP Group, immediately recognized the technology's importance, noting that even household appliances like washing machines now depend on semiconductor chips. Chodankar described Tendulkar's involvement as a source of motivation and credibility, particularly during challenging phases of the project, with the former cricketer's support helping to energize the team and reinforce the long-term vision of building domestic semiconductor capabilities.
Ambitious Expansion Plans in Panvel
The company has secured approximately 100 acres of land in Panvel for its proposed semiconductor fab, with the land allocation including a 50% subsidy that strengthens the project's financial viability. The comprehensive expansion strategy encompasses multiple specialized production lines and advanced manufacturing capabilities.
| Expansion Parameter | Details |
|---|---|
| Investment Amount | ₹12,000 crore |
| Land Area | 100 acres |
| Location | Panvel, near Mumbai |
| Land Subsidy | 50% |
| Planned OSAT Lines | 5-7 lines |
The facility will include multiple outsourced semiconductor assembly and test (OSAT) lines, as well as a prototype fab focused on compound semiconductor chips. The company is initially concentrating on legacy packaging for automobile applications while preparing to serve other segments including electronics, memory chips, and SIM cards.
Production Timeline and Thermal Imaging Focus
RRP Group aims to roll out its first prototype chip by the end of the next quarter, specifically designed for thermal imaging applications where the company already possesses strong expertise. The prototype development has received positive feedback from visiting semiconductor ecosystem teams, validating the company's technical approach and progress.
| Production Milestone | Timeline |
|---|---|
| First Prototype Chip | End of next quarter |
| Application Focus | Thermal imaging |
| Pilot Production | Following prototype validation |
| Full Production Line | End of 2027 |
Chodankar emphasized that the government's objective extends beyond simple chip manufacturing to include forward integration. As part of this approach, RRP Group plans to integrate its prototype chip into complete thermal imaging camera systems for evaluation by government agencies and customers. Once the technology is validated, the company will progress through pilot production to full-scale manufacturing, expecting to achieve a functional production line for thermal imaging chips by the end of 2027.
Building India's Semiconductor Ecosystem
The expansion represents a key milestone in India's efforts to build a comprehensive domestic semiconductor ecosystem under the Make in India and semiconductor mission framework. RRP Group's approach aligns with the government's vision of not only manufacturing chips but also developing complete integrated solutions that can serve various sectors including automotive, electronics, and defense applications through thermal imaging technology.
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