India has officially entered the semiconductor manufacturing sector with the inauguration of CG Semi’s OSAT facility in Sanand, Gujarat.
The July 4 ceremony, led by Prime Minister Narendra Modi, marks the start of commercial production at one of the nation’s first major chip packaging plants. The project represents an investment of ₹7,600 crore, roughly $870 million.
The joint venture combines CG Power and Industrial Solutions, Japan’s Renesas Electronics America, and Thailand’s Stars Microelectronics. It operates under the India Semiconductor Mission.
The G1 pilot plant is already active, producing approximately 0.5 million units daily. The facility aims for a peak annual capacity of 4.7 billion units within five years. A second expansion, G2, is expected by the end of 2026. Production lines will serve automotive, industrial, consumer electronics, and 5G sectors.
Ahead of the official launch, the plant has already begun exporting assembled chips to Malaysia.
Sanand is evolving into a strategic chip cluster, hosting this facility alongside recent projects from Micron and Kaynes Semicon. This domestic push follows the global chip shortage, which exposed India’s near-total reliance on imports.