Assembly, Testing, Marking and Packaging (ATMP) is a core concept and process in the global semiconductor manufacturing value chain, referring to the crucial backend processes that occur after a chip is fabricated. The process involves assembling the individual chips, or dies, rigorous in-house testing for quality assurance, marking them with identification details, and finally packaging them for use in electronic devices.
The concept gained prominence in Indian policy as a key pillar of the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was approved by the Union Cabinet in December 2021 with a total outlay of ₹76,000 crore. This initiative, under the aegis of the India Semiconductor Mission (ISM), was created to solve the problem of supply-chain vulnerability and to achieve strategic autonomy in this critical technology sector.
The mechanism works through a scheme that provides financial incentives to companies setting up ATMP facilities in India. The scheme for setting up these units initially extended a fiscal support of 30% of the capital expenditure to approved applicants. This was later revised to a fiscal support of 50% of the capital expenditure.
ATMP is closely connected to OSAT (Outsourced Semiconductor Assembly and Test), which performs the same functions but is done by third-party service providers rather than in-house. The entire ecosystem is aligned with the national goals of Make in India and Atmanirbhar Bharat. A recent change was the announcement of ISM 2.0 in the Union Budget 2026-27 (February 2026), which shifts focus to strengthening the upstream ecosystem, such as equipment and materials, building upon the foundation of fabrication and ATMP established in the initial phase.