Epoxy Moulding Compound

The filled epoxy transfer-moulded around the die to protect it. Rheology is formulation-specific to each package family, so it cannot be pooled.

Tier B: Right Opportunity, Wrong Mental Model Medium criticality

Licensed compounding is viable; formulating from first principles is not. The opening is a partnership, not a startup.

What It Does

The black epoxy shell moulded around a finished chip

Encases the chip in protective plastic, custom to each package type.
India imports about 90% of this, at a real cost premium.
Realistic path: a licensed partnership, not building the chemistry from scratch.

India Position

Import dependency: 90%
Made in India today: None
MSME entry capital: Rs 3–5 Cr
Time to qualify: 18–30 months

Basis: The clusters report records roughly 90% import dependency for encapsulation resins, with an 18-24 month path to 30% localisation.

What Breaks, and Who Could Fix It

What breaks

Roughly 90% import dependency at Sanand scale, translating to an estimated Rs 50-100 crore a year premium at TSAT’s volume, and limiting formulation customisation for ISP and flip-chip packages.

Who could fix it

The realistic pathway is attracting an established firm or an Indian chemical company within 18-24 months: mid-size chemical manufacturer scale, not first-generation MSME.

Best and worst case

Best case if this breaks

Ready-to-use compound can be imported. Tier 2 rather than Tier 1: its absence raises cost, it does not stop production, as long as supply holds.

Worst case if this breaks

Unlike bonding wire, compound cannot be pulled from a generic buffer; different packages need different rheology. A disruption stalls encapsulation across that formulation’s whole package family.

Best case to fix it

Rs 3-5 crore at 15-22% margin, for a compounding operation under licence or in partnership with an established formulator.

Worst case to fix it

Formulating semiconductor-grade compound from first principles needs filler chemistry and rheology R&D, a multi-year build with no credible domestic-only pathway.

Representative Suppliers

Listing a firm documents the market as we understand it. It is not an endorsement, a recommendation, or evidence of any commercial relationship.

Supplier	Origin	Scale	Confidence
Sumitomo Bakelite Named in both reports as a realistic partnership target.	Japan	Large	Reported
Henkel Named in both reports as a realistic partnership target.	Germany	Mega	Reported
Resonac	Japan	Large	Likely
Kyocera	Japan	Large	Likely

Where It Is Consumed

Step 4: Encapsulation

Epoxy moulding compound is transfer-moulded around the die under heat and pressure in a multi-cavity tool.

Sources

TSAT packaging process and MSME component map as of 2026-08
Semiconductor OSAT clusters: Penang, Sanand, Morigaon as of 2026-04

Last reviewed 2026-08-28.

How to read this page

Reading Key

Every entry carries the same five figures, so two inputs anywhere in the chain can be compared directly. What each one is, and what it is not:

Import dependency: The share of Indian demand for this input that is met by imports today. A percentage is published only where we can state the basis for it, and the build rejects a figure that has none. “Not established” means no sourced figure exists yet, not that the figure is zero; for the domestic picture, read “Made in India today” instead.
Made in India today: How much of this input is actually produced in India: none, pilot scale, partial, or established. This is the field to read when import dependency is not established.
MSME entry capital: What it would plausibly cost an Indian MSME to enter this input at the smallest viable scale, in crore rupees. Plant and equipment only; it excludes working capital and the qualification cycle.
Time to qualify: How long from a working sample to a qualified first shipment, once the line exists. Qualification, not construction, is what usually decides whether an entry succeeds.
India readiness tier: Our verdict on whether an Indian founder can realistically enter this input, derived from the four figures above and stated as one of three tiers.

The three tiers

Tier A: Buildable Now: Under roughly Rs 5 crore of entry capital and 12 to 24 months to a qualified first shipment. A founder can start here.
Tier B: Partnership or Distribution: There is real money here, but not in manufacturing the thing. The opening is in stocking, distribution, purity uplift or a licensed partnership.
Tier C: Not Yet: Requires a joint venture, a technology licence, or a multinational’s balance sheet. Worth understanding, not worth starting.

Made in India today

None: No Indian production we can identify. Demand is met entirely from abroad.
Pilot scale: Made in India at laboratory, pilot-line or single-customer scale only.
Partial: Real Indian production exists, but it covers part of the range or part of the demand.
Established: Indian production is routine and qualified, at commercial volume.

Confidence

Confidence describes how well evidenced our listing is. It is not a rating of the supplier or of its products.

Verified: Checked against a primary source: the firm’s own filing, product documentation or announcement.
Reported: Consistently reported by trade press or industry analysts, but we have not seen the primary document ourselves.
Likely: A credible supplier for this input given their product range, though we have not confirmed that they actually supply it.
Directional: Included to show the shape of the market. Read it as an observation, not as a claim about this firm.

Scale

Scale is a bucket, not a revenue figure. We publish a band we can hold for years rather than a number that is stale in a quarter.

Mega: A global top-tier firm that effectively sets the price and the standard for this input.
Large: A major international supplier, usually with plants or sales in several regions.
Mid: An established specialist, often strong in one region or one product family.
Small: A niche or regional supplier. Frequently the realistic first partner for a new Indian entrant.