en.Wedoany.com Reported - Indian Prime Minister Narendra Modi announced on Saturday that CG Semi has commenced commercial production of chips at its Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This marks the third such operational plant in India, following those of Micron Technology and Kaynes Semicon.
CG Semiconductor is a joint venture between CG Power and Industrial Solutions (part of the Murugappa Group), Renesas Electronics, and Stars Microelectronics. The G1 OSAT facility in Sanand has a peak capacity of 300 million chips per year. With financial support from the central and state governments, CG Semi plans to invest over 76 billion rupees within five years to develop two OSAT facilities, named G1 and G2. According to a company statement, G1 has commenced commercial production, while G2 is under development and will significantly boost overall capacity once operational.
During the inauguration ceremony, Prime Minister Modi stated that the plant brings together the collective efforts of industry partners from India, Japan, and Thailand. He noted that the company has set a production target of 5 billion chips annually, equivalent to over 15 million chips per day, and expressed confidence that this goal will be achieved soon. Modi also mentioned that within just a few months, Micron, Kaynes, and CG Semi have begun production in India, indicating the formation of a semiconductor cluster in the country. He emphasized that chip packaging is now taking place in India, and that specialized companies, chemical production, testing laboratories, service equipment industries, and design centers will follow, along with the emergence of startups.
Union Minister of Electronics and Information Technology Ashwini Vaishnaw stated that the chips manufactured at the CG Semi facility will be used in automotive and industrial applications and exported to Japan, the United States, and Europe. The chips produced at this plant will be applied in cars, scooters, and various industrial scenarios, earning international acclaim for Indian technology.
The Union Cabinet approved the project in February 2024 under the India Semiconductor Mission (ISM) 1.0. The facility currently employs over 300 people and is expected to create more than 5,000 direct and indirect jobs over the next five years. The plant will produce traditional packaged chips such as QFN and QFP, as well as advanced FC-BGA and FC-CSP chips, covering applications in automotive, electronics, industrial equipment, 5G communications, and power sectors.
Gujarat Chief Minister Bhupendra Patel stated that the Prime Minister's vision has elevated India's global standing in the semiconductor and electronics sectors. During the global supply chain disruptions caused by the COVID-19 pandemic, the Prime Minister resolved to make India a global semiconductor hub, and this vision has now become a reality through the fulfillment of every commitment. CG Semi added in its statement that the company has brought together semiconductor professionals with deep experience in assembly, packaging, and testing, built a strong talent base, and invested in training Indian engineers, operators, and technicians to support large-scale OSAT operations.
CG Power Chairman Vellayan Subbiah stated that the first shipment speaks louder than any words, reflecting immense confidence in these chips and the collective efforts of the team. Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA) and SEMI, said that CG Semi's success is a source of pride for the entire industry. The transition from project execution to commercial production and export sends a strong signal to the global semiconductor ecosystem that India is rapidly building credible manufacturing capabilities.
