CG SEMI Sanand OSAT Facility Commences Commercial Production
Union Minister Ashwini Vaishnaw announced that CG SEMI's OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat has begun commercial production, marking India's third operational semiconductor plant this year and CG SEMI's second facility. The facility represents a significant milestone in India's semiconductor manufacturing ecosystem development under Prime Minister Narendra Modi's leadership.
The Sanand facility was built with an investment of over ₹7,600 crore and achieved commercial production just 27 months after its groundbreaking on 13 March 2024. The project was developed in partnership with Renesas Electronics of Japan, providing India access to global semiconductor technologies, manufacturing practices, and quality systems.
Expansion Timeline and Projections
Of the 12 semiconductor projects approved by the central government, three are now in commercial production, with two more facilities expected to be inaugurated in the coming months. By the end of 2026, five semiconductor plants are projected to be operational across India, significantly boosting the Atmanirbhar Bharat mission.
Production Output and Market Reach
The chips manufactured at the Sanand facility will serve domestic automobile, scooter, and industrial equipment sectors while also being exported to Japan, the United States, and Europe. This positions India as a meaningful contributor to the global semiconductor supply chain.
Social Impact and Workforce Development
The facility represents not just technical achievement but also social change, with young women from Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala, and Gujarat finding employment as operators. These employees received specialized training in Malaysia, though the Minister noted that as India's semiconductor ecosystem matures, similar world-class training could increasingly be made available within the country.
Broader Semiconductor Ecosystem Development
Over the past four years, India's semiconductor sector has seen substantial progress: 12 semiconductor units are currently under construction, 24 deep-tech chip design startups have emerged, over 70,000 young people have been trained in chip design, and 315 universities now offer semiconductor design-related courses. India's first semiconductor fab in Dholera is progressing rapidly.
Electronics Manufacturing Context
India's electronics manufacturing sector has grown into an industry worth close to ₹13 lakh crore, supporting over 25 lakh jobs. The commencement of commercial production at the CG SEMI facility strengthens India's position in the global semiconductor value chain and reinforces the country's emergence as a trusted and self-reliant destination for semiconductor manufacturing.
Event Participation
Prime Minister Narendra Modi toured the facility's Experience Centre and Clean Room, interacted with operators and engineers, and unveiled the plaque marking the commencement of commercial production. The Chairman of CG SEMI handed over the facility's first product to the Global Vice President and President of Renesas Electronics India. The event was attended by Gujarat government ministers, Members of Parliament, MLAs, industry representatives, and senior officials.