At the inauguration of CG Semi Private Limited’s G1 Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat on Thursday, Union Electronics and Information Technology Minister Ashwini Vaishnaw announced that the first ‘Made in India’ semiconductor chip will come from CG Semi’s pilot production line.
This comes in tandem with Prime Minister Narendra Modi stating in August 23 that India will be rolling out its first indigenous semiconductor chip in the market towards the end of 2025.
National milestone for technological sovereignty
CG Semi, a subsidiary of CG Power and Industrial Solutions and part of the Murugappa Group, will be an end-to-end OSAT facility, offering solutions across both traditional and advanced packaging technologies.
Backed by central and state government support, 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.
Bolstering the semiconductor ecosystem and workforce
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.
Cumulatively, both facilities are projected to generate over 5,000 direct and indirect jobs, and will serve both domestic and international customers across a spectrum of industries, including automobile, electric vehicles (EV) and consumer electronics.
In a media interaction, Vaishnaw emphasized the importance of the pilot line, as it will produce the qualifying chip for customers, after which commercial production can take place.
Speaking at the inauguration, CG Power Chairman, Vellayan Subbaih said, “This facility represents more than a milestone for me 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 our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty.”
Other key announcements during CG Semi’s inauguration by Vaishnaw included the expected inauguration period of Micron Technology’s semiconductor Assembly, Testing, Marking and Packaging (ATMP) plant during December 2025-January 2026. He also shared India’s goals of boosting semiconductor talent to 1 million people by 2032.