Prime Minister Narendra Modi inaugurated CG Semi’s ₹7,600 crore Outsourced Sanand Semiconductor Assembly and Test (OSAT) facility in Gujarat.
The commercial launch makes it the country’s third semiconductor manufacturing plant to begin operations in the past four months and strengthens New Delhi’s push to reduce dependence on imported chips.
The project is part of the India Semiconductor Mission and has been developed through a partnership among CG Power, Japan’s Renesas Electronics and Thailand’s Stars Microelectronics.
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Sanand Strengthens India’s Semiconductor Ambitions
Speaking at the inauguration, Prime Minister Modi said that India is steadily building a complete electronics value chain, from components to semiconductors.
“The sector is expected to generate significant employment in the coming years. This facility is designed to produce around 20 crore semiconductor chips annually in its initial phase, with plans to expand capacity to nearly 500 crore chips a year over time.
– said Prime Minister Narendra Modi
The Prime Minister also said that the semiconductor manufacturing, alongside artificial intelligence (AI), robotics and advanced electronics, would open new opportunities for young professionals.
He further highlighted India’s rapid growth in electronics manufacturing, noting that the country has risen to become the world’s second-largest mobile phone manufacturer over the past decade.
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Global Partnerships and Long-Term Manufacturing Push
The Union Cabinet approved the Sanand project in February 2024 under the India Semiconductor Mission.
Built by CG Semi Pvt. Ltd., a subsidiary of CG Power and Industrial Solutions, the facility has technical support from Renesas Electronics and Stars Microelectronics.
The plant is expected to manufacture semiconductor packages used across sectors including automotive, consumer electronics, industrial equipment, telecommunications and power systems, while helping integrate India into global electronics supply chains.
Industry officials also expect the emerging semiconductor cluster in Sanand to attract suppliers, logistics firms and supporting industries, creating both direct and indirect employment opportunities.
The launch adds another operational facility to India’s growing semiconductor network.
While India has a long way to go to achieve large-scale chip manufacturing goals, expanding packaging and testing capacity is an important step towards building a stronger domestic electronics ecosystem and improving India’s position in the global semiconductor supply chain.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
