India’s growing OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies. base is shifting the bottleneck from packaging to testing. With five semiconductor plants in the country now in commercial production, the key question is whether test infrastructure can keep up with production targets across different device types and test times.
The pressure is rising alongside a fast-expanding global test-equipment market. SEMISemiconductor Equipment and Materials International’s July 2026 forecast puts semiconductor test equipment sales at $15.3 billion in 2026, up 31% year on year after 55.3% growth in 2025. The industry body expects the market to reach $20.8 billion by 2028, supported by higher device complexity and tougher performance and reliability requirements.
For Indian outsourced semiconductor assembly and test (OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies.) providers, capacity planning depends heavily on how long each device takes to test. A part that can be screened in under a minute imposes a very different equipment load than one that needs five to 10 minutes per unit. Pin count and the number of required test steps also matter for simpler devices, since they directly affect throughput.
In September 2025, Emerson announced a partnership with Kaynes Semicon to deploy the NI Semiconductor Test System (STS) as the primary test platform at Kaynes’ OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies. facility in Sanand, Gujarat. NI India says Kaynes has decided to proceed with NI testers and that deliveries are planned over the coming months. The company has not publicly disclosed how many systems Kaynes will receive.
NI describes the STS as a platform that can support both mixed-signal and RF1. radio frequencyHigh-frequency electromagnetic oscillations used, for example, to excite plasmas.2. resonance frequencyQuantity describing a signal’s frequency, bandwidth, spectral behavior or transmission rate. applications. That matters for OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies.s that expect their device mix to evolve, because the same tester can be reused across different device-under-test types instead of requiring a separate platform for each product family.
Test architecture is also shaped by whether an OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies. is handling legacy parts or new product development. Older devices may need to be migrated from aging platforms to newer systems without losing test coverage, while new chip designs can require a test flow to be created from scratch. In those cases, the OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies. may need to define the required tests, select the system, and prove that throughput and coverage targets are met.
NI says it uses TestStand to automate test sequences and speed up go/no-go decisions for chip lots. For newer devices, the company also applies AIartificial intelligence in parts of test development: its Nigel AIartificial intelligence tool can analyze a chip datasheet and suggest a possible test architecture, giving engineers a starting point rather than requiring them to build the full setup manually.
India Semiconductor Mission 2.0 places advanced packaging and testing units among its six priority areas. NI says it has expanded local engineering support so its staff can assist OSAT1. Outsourced Semiconductor Assembly and TestA business model in which assembly and test services are provided by a specialized external supplier.2. outsourced assembly and testAn OSAT provider assembles, packages, and tests chips for other companies. customers on site, while also pointing to Tessolve as part of the testing ecosystem. The broader challenge remains the same: scaling test capacity and expertise quickly enough to match India’s expanding semiconductor manufacturing base.