Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand in Gujarat, hailing it as a landmark achievement in India’s semiconductor journey and a significant step towards strengthening the country’s technological self-reliance and global competitiveness in chip manufacturing.
The inauguration marks the beginning of commercial semiconductor production at one of the first four projects approved under the India Semiconductor Mission (ISM), a flagship initiative aimed at building a robust domestic semiconductor ecosystem and integrating India more deeply into global electronics supply chains.
Addressing the event, Modi said, “A landmark day for India’s semiconductor journey. The CG SEMI OSAT facility in Sanand will strengthen the chip manufacturing ecosystem, boost technological self-reliance and enhance India’s position in the global semiconductor value chain.”
Emphasising the rapid progress of the government’s semiconductor initiative, the Prime Minister added, “The Semicon India programme is gathering rapid momentum… Step by step. Brick by brick. Chip by chip.”
Developed by CG Semi Pvt. Ltd., a subsidiary of CG Power, the facility has been built with an investment of more than Rs 7,600 crore over five years through a strategic collaboration with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics. The project is expected to generate around 5,000 direct and indirect jobs over the next five years while significantly expanding India’s semiconductor packaging capabilities.
According to the Prime Minister’s Office (PMO), the plant offers comprehensive backend semiconductor services, including wafer sorting, advanced package design, packaging, testing, failure analysis, product characterisation and logistics support.
“Once fully ramped up, the facility will have an annual production capacity of up to 5 billion semiconductor chips and will help address the growing global demand for memory and storage solutions driven by rapid advancements in Artificial Intelligence and high-performance computing,” the PMO said.
The facility will cater to key sectors such as automotive electronics, industrial equipment, telecommunications, 5G, power management and the Internet of Things (IoT). It is equipped to handle both conventional packaging technologies, including Quad Flat No-lead (QFN) and Quad Flat Package (QFP), as well as advanced packaging solutions such as Flip Chip Ball Grid Array (FC-BGA) and Flip Chip Chip Scale Package (FC-CSP).
The Sanand unit has already established its international footprint by exporting its first commercial semiconductor packages to Malaysia for Renesas Electronics’ customers, highlighting India’s growing role in the global semiconductor supply chain.
The launch also marks the third semiconductor project in Sanand to commence commercial production under the India Semiconductor Mission, reinforcing Gujarat’s emergence as one of India’s key semiconductor manufacturing and chip packaging hubs.
Launched by the Centre to establish a comprehensive semiconductor and display manufacturing ecosystem, the India Semiconductor Mission seeks to reduce reliance on imported chips, attract global investments and build resilient electronics supply chains. The initiative forms a central pillar of India’s strategy to emerge as a trusted global destination for semiconductor manufacturing and advanced electronics.
With the commissioning of the CG Semi OSAT facility, India has taken another significant step in developing an end-to-end semiconductor ecosystem, bolstering domestic chip packaging and testing capabilities while positioning itself to meet rising global demand fuelled by artificial intelligence, high-performance computing and next-generation digital technologies.
