Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on July 4, 2026, marking a significant milestone in India's semiconductor manufacturing journey. The facility represents a joint venture involving domestic, Japanese, and Thai industry partners and is positioned as a model of international technological collaboration.
Facility Details and Production Capacity
The CG Semi OSAT facility has commenced commercial production with an initial capacity of 20 crore units annually. The company has set an ambitious target to scale production to 500 crore units annually. The project demonstrated rapid execution, with the foundation stone laid in 2024 and chip testing initiated by August 2025, achieving full-scale production within approximately two years.
Strategic Context and Electronics Manufacturing Growth
The semiconductor facility launch is presented as the next phase in India's electronics manufacturing evolution that began a decade ago. The Prime Minister highlighted that mobile phone production has increased 33-fold since 2014, making India the world's second-largest producer and exporter of mobile phones. Overall electronics production has grown nearly seven times compared to 2014 levels, while electronics exports have expanded eleven-fold during this period.
Ecosystem Development and Cluster Formation
The inauguration is part of broader semiconductor ecosystem development in the Sanand region, with production launches by multiple firms including Micron, Kaynes, and CG Semi occurring within a few months. The government envisions this developing into a comprehensive semiconductor cluster including specialized chemical producers, testing labs, design centers, and startups, creating multiplicative economic and employment opportunities across the region.
Future Vision and Workforce Development
The government's strategic roadmap aims to build a complete semiconductor ecosystem in India spanning chip design, fabrication, and packaging. The initiative includes workforce development programs, with examples of young women from tribal communities receiving technical training in Malaysia to work on advanced manufacturing processes. The Prime Minister emphasized that this semiconductor and AI revolution will generate opportunities across research, design, and supply chain management, building on the employment patterns established during previous IT and smartphone manufacturing booms.