Prime Minister Narendra Modi has inaugurated CG Power & Industrial Solutions Ltd.’s new semiconductor unit in Sanand, Gujarat, operated by CG Semi Pvt. Ltd., which has begun production with an annual capacity of 200 million chips and aims to scale up to 5 billion chips per year.
This milestone strengthens India’s semiconductor ecosystem and positions the country as a rising player in the global supply chain.
The new semiconductor unit in Sanand represents one of India’s first large-scale Outsourced Semiconductor Assembly and Test (OSAT) facilities. Operated by CG Semi Pvt. Ltd., a joint venture between CG Power & Industrial Solutions, Renesas Electronics Corporation of Japan, and Stars Microelectronics of Thailand, the plant has commenced commercial production after completing equipment installation, process stabilisation, workforce training, and customer qualification.
The facility currently has an annual production capacity of 200 million chips, with plans to expand to 5 billion chips per year over the next five years. At peak performance, the plant is capable of producing up to 15 million chips per day, making it one of the largest OSAT operations in India.
The chips manufactured here will serve diverse sectors including automotive, consumer electronics, industrial equipment, telecommunications, electric vehicles, power electronics, networking, and Internet of Things (IoT) devices.
The Sanand plant has been developed with an investment of more than ₹7,600 crore under the Government of India’s SEMICON India Program. This initiative is designed to reduce India’s reliance on imported semiconductors and build a robust domestic ecosystem for chip packaging and testing.
Unlike fabrication plants that produce silicon wafers, OSAT facilities perform critical functions such as packaging finished silicon dies into usable chips, conducting electrical and reliability testing, and preparing them for commercial use.
Prime Minister Modi emphasised that this development is a significant step in India’s technological journey, noting that domestically manufactured chips will power future technologies such as artificial intelligence, robotics, and advanced computing.
He highlighted that India’s electronics manufacturing sector has already seen a 33-fold increase in mobile phone production and an 11-fold rise in electronics exports since 2014, underscoring the country’s growing capacity in high-tech industries.
CG Semi has already begun exporting its first batches of chips to international markets, including Japan and Malaysia, marking one of the earliest instances of India’s OSAT industry entering the global supply chain.
The company has also invested heavily in workforce development, training Indian engineers, operators, and technicians to handle high-volume semiconductor packaging and testing operations.
Construction of a second OSAT facility, referred to as G2, is currently underway in Sanand. Once operational, this unit will significantly expand production capacity, with projections suggesting a combined output of nearly 4.7 billion chips annually.
Together, the two facilities are expected to create around 5,000 direct and indirect jobs, further strengthening India’s semiconductor talent base and regional economic development.
The chips produced at the Sanand facility include advanced packages such as QFN, QFP, SOIC, SOP, TSSOP, Flip-Chip BGA, Flip-Chip CSP, and Flip-Chip QFN, which are widely used in high-performance electronics.
These packages ensure that chips can withstand heat, vibration, and long operating hours, making them suitable for demanding applications in automotive systems, industrial automation, 5G equipment, and power electronics.
This milestone marks the third semiconductor venture to begin commercial production in India this year, with two more facilities expected to commence operations by the end of 2026.
It reflects India’s ambition to become a key player in the global semiconductor supply chain, reduce import dependency, and establish technological sovereignty in critical industries.
Agencies
