India Steps Closer To Chip Self-Reliance With Inauguration Of CG Semi’s Sanand Pilot Line

Union Minister of Electronics and Information Technology Ashwini Vaishnaw, along with Gujarat Chief Minister Bhupendra Patel, on Thursday (28 August) inaugurated one of India’s first end-to-end Semiconductor Outsourced Assembly and Test (OSAT) pilot line facilities set up by CG Power at Sanand.

The event marks a major milestone in the country’s efforts to build a self-reliant semiconductor ecosystem.

Speaking at the launch, Vaishnaw said the pilot line represents a decisive step toward developing semiconductor design, manufacturing, and downstream capabilities in India.

Vaishnaw noted that the chips manufactured at the plant will be used for customer qualification, and once approved, it becomes much easier for commercial plants to commence full-scale production.

He escribing the facility as a crucial achievement under the India Semiconductor Mission (ISM), which has so far approved 10 projects.

He emphasised that this inauguration is among the most significant milestones achieved under the India Semiconductor Mission, which has approved ten projects so far.

With the global semiconductor industry expected to face a shortage of one million professionals by 2032, India has an opportunity to bridge a significant share of the gap, he said.

The government has partnered with 270 universities to provide access to advanced semiconductor design tools, which were used over 1.2 crore times in 2025 alone.

Already, 20 chips designed by 17 institutions have been fabricated at the Semi-Conductor Laboratory in Mohali.

He said that very few countries provide such tools to students, and added that this initiative will empower India’s youth, strengthen the technical ecosystem, and position the nation as a global hub of semiconductor talent.

The newly inaugurated CG Semi facility in Sanand, backed by central and state government support, is among India’s first large-scale OSAT plants.

It offers end-to-end chip assembly, packaging, testing, and post-test services across both traditional and advanced packaging technologies.

CG Semi is investing over Rs 7,600 crore (~$870 million) over five years to build two state-of-the-art facilities, G1 and G2, in Sanand.

The G1 plant, opened today, will operate at a peak capacity of 0.5 million units per day.

Equipped with advanced manufacturing execution systems, high-yield equipment, and in-house reliability labs, it is undergoing ISO 9001 and IATF 16949 certification.

Customer qualification runs will begin shortly, with commercial production scheduled for 2026.

The second facility, G2, located about three kilometers away, is under construction and expected to be operational by the end of 2026 with a capacity of 14.5 million units per day.

Together, the two plants are projected to generate over 5,000 direct and indirect jobs.

CG Power Chairman Vellayan Subbiah described the Sanand facility as a “national milestone.”

He said, “It shows how Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty.”

To ensure readiness for large-scale operations, CG Semi has built a leadership team with over 1,000 years of combined semiconductor experience. It has also sent batches of Indian engineers and technicians to Malaysia for hands-on training.

CG Semi, a joint venture between CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation of Japan, and Thailand-based Stars Microelectronics, will provide turnkey semiconductor assembly and test services.

Its portfolio spans advanced and legacy packages for sectors including automotive, defence, infrastructure, and IoT.

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