India is set to advance its semiconductor manufacturing with the commencement of commercial chip production at CG Semi’s Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, on July 4. The project, part of the India Semiconductor Mission approved by the Union Cabinet in February 2024, is developed by CG Semi Pvt. Ltd., a subsidiary of CG Power and Industrial Solutions Limited, with an investment of Rs 7,500 crore.
The OSAT facility, established through a partnership between CG Semi, Renesas Electronics from Japan, and Stars Microelectronics from Thailand, will play a crucial role in India’s semiconductor value chain. It will handle the assembly, testing, and packaging of semiconductor chips before distribution to end users.
Prime Minister Modi will inaugurate the commercial production, and the semiconductor chips produced at the Sanand facility will be supplied to customers both in India and abroad. The plant will focus on manufacturing various chip packages, serving industries like automotive, electronics, 5G infrastructure, and power applications.
The project is expected to create around 5,000 direct and indirect job opportunities over the next five years, with the current workforce exceeding 300 employees. Additionally, a second CG Semi plant is under construction, and the two facilities combined are projected to produce 1.5 crore chips daily.
Sanand is evolving into India’s primary chip-packaging cluster and a significant player in the global semiconductor value chain, moving beyond its traditional identity as an automobile manufacturing hub. PM Modi has emphasized the transformative impact of India’s semiconductor initiatives, aiming to build a comprehensive ecosystem across the semiconductor value chain.
