Sanand Facility Marks New Chapter in India’s Chip Manufacturing Journey
On 28 August 2025, a major milestone was achieved in India’s semiconductor sector. The Union Minister for Electronics and Information Technology, Shri Ashwini Vaishnaw, along with Gujarat’s Chief Minister Shri Bhupendra Patel, inaugurated one of India’s first end-to-end OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facilities. Located in Sanand, Gujarat, the CG Semi plant signals a significant step towards making Bharat self-reliant in semiconductor technology.
This facility is part of the broader India Semiconductor Mission and has been developed by CG Power. It offers full-scale chip assembly, packaging, testing, and post-test services, supporting both traditional and modern packaging technologies.
Gujarat Emerges as a Semiconductor Hub
The Minister emphasised that this launch is a major leap in Bharat’s journey towards becoming a global semiconductor powerhouse. Gujarat, with strong government backing, is playing a vital role in driving this transformation.
Shri Vaishnaw highlighted that chips produced in the pilot facility will go through customer qualification. Once approved, these chips will help accelerate full-scale production in commercial plants. He noted that the facility is a key achievement under the India Semiconductor Mission, which has already approved ten major projects.
Backed by central and state governments, CG Semi plans to invest over ₹7,600 crore to develop two facilities, G1 and G2, in Sanand. The G1 plant, inaugurated during the event, has a peak capacity of 0.5 million units per day and features advanced automation, in-house labs, and high-precision tools. Commercial production is set to begin in 2026.
Building Skills to Bridge the Global Talent Gap
The Minister also addressed the pressing need for skilled semiconductor professionals. By 2032, the world is expected to face a shortfall of one million such professionals. India is positioned to bridge this gap through focused skill-building efforts.
As part of this mission, the Government has partnered with 270 universities, providing them with top-tier semiconductor design tools. These tools saw over 1.2 crore usages in 2025 alone. Already, 20 student-designed chips from 17 institutions have been fabricated at the SCL in Mohali.
This initiative, according to Shri Vaishnaw, empowers India’s youth and strengthens the nation’s capability in semiconductor design and production.
CG Semi: Driving Technological Sovereignty
The Chairman of CG Power, Mr. Vellayan Subbiah, called the facility a national milestone. He said it represents how government and industry can work together to realise the Prime Minister’s vision of technological independence.
CG Semi is a joint venture between CG Power (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics. The G2 facility, under construction nearby, is expected to be operational by late 2026, with a capacity of 14.5 million units per day. Combined, both plants are set to create over 5,000 direct and indirect jobs.
CG Semi has also invested in training Indian engineers and technicians, sending them to Malaysia for hands-on experience. This will support rapid skill development and prepare the workforce for high-volume chip production.
With this launch, India moves closer to becoming a leading global hub for semiconductor manufacturing.