CG Semi, a subsidiary of CG Power and Industrial Solutions, would roll out the first made-in-India chip from its facilities in Sanand in Gujarat. Inaugurating the facility on Thursday, Union electronics and information technology minister Ashwini Vaishnaw said that Prime Minister Narendra Modi will “soon” dedicate the chip produced at this facility. “This is a major milestone in our country’s semiconductor journey,” he added.
The Murugappa Group company’s facility is India’s first full-service outsourced semiconductor assembly and test (OSAT) provider, and aims to offer solutions meant for both traditional as well as advanced packaging technologies. “This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets,” the firm said in a statement.
All about the First facility- G1
The first facility, known as G1, which was inaugurated on Thursday, will operate at a capacity of 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services.
With support from the central and state governments, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore over five years to develop two OSAT facilities (G1 and G2) in Sanand. Commercial production in the G1 plant is set to commence in 2026, with a peak capacity of an estimated 0.5 million units per day.
The G2 facility, currently under construction, is expected to be completed by the end of calendar year 2026 and will scale up to a maximum capacity of approximately 14.5 million units per day. Together, the two plants are projected to create over 5,000 direct and indirect jobs in the region.
Urgent requirement of skilled workforce
In his speech, Vaishnaw said infrastructure alone would not be enough to make India a global semiconductor hub, underlining an urgent need to build a skilled workforce for the sector. “As part of the semicon mission, one major objective is to develop talent pipeline. By 2032, there could be a shortfall of 1 million semiconductor talent,” he said.
Vellayan Subbiah, chairman, CG Power, said this facility represented more than a milestone for him or for CG Semi; it is a national milestone. It shows how the government and industry can come together with conviction, capital, and scale to achieve the vision set by the Prime Minister. “Every chip we make here is a step toward India’s technological sovereignty,” he said
The fourth-generation Murugappa Group scion and chairman also highlighted how the Chinese government supported its industry to become a global supplier, stressing that India needs to follow a similar path. He underscored the importance of developing local talent and creating opportunities to bring back Indians who are studying abroad, pledging to welcome them and leverage their expertise for the country’s growth.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in December 2021 with a total outlay of Rs 76,000 crore under the India Semiconductor Mission.