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Prime Minister Narendra Modi has inaugurated the CG SEMI Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, marking the start of commercial production at India’s third semiconductor plant to become operational in 2026. The facility represents another milestone in the country’s efforts to build a complete semiconductor manufacturing ecosystem under the ‘Design in India’ and ‘Make in India’ initiatives.
During the inauguration, the Prime Minister said India’s semiconductor journey is a natural progression of the country’s electronics manufacturing growth over the past decade, evolving from finished products to components and now semiconductor manufacturing.
Commercial Production Begins After 27 Months
The CG SEMI OSAT facility progressed from foundation to commercial production in just over two years.
The project timeline includes:
- Foundation stone laid – March 2024
- Chip testing began – August 2025
- Commercial production started – July 2026
Union Minister Ashwini Vaishnaw noted that the facility was completed in approximately 27 months, crediting engineers, workers, and industry partners for the rapid execution.
₹7,600 Crore Investment With Renesas Partnership
The semiconductor facility has been established with an investment of over ₹7,600 crore in partnership with Renesas Electronics of Japan, alongside Indian, Japanese, and Thai partners.
According to the government, the facility currently has an annual production capacity of 20 crore semiconductor units, with plans to expand this to 500 crore units annually in the future.
The chips produced at the facility will cater to sectors including:
- Automotive electronics
- Electric scooters
- Industrial equipment
The company also plans to export semiconductor products to Japan, the United States, and Europe.
Sanand Emerging as a Semiconductor Hub
PM Modi highlighted that semiconductor manufacturing depends on ecosystem-driven development rather than standalone factories. He said Sanand is steadily evolving into a semiconductor cluster similar to global technology hubs such as Silicon Valley, Hsinchu Science Park, and Tsukuba Science City.
The region already hosts companies including Micron, Kaynes, and CG SEMI, while additional investments are expected across semiconductor materials, testing facilities, design centres, and startups.
Electronics Manufacturing Continues to Expand
The Prime Minister said India’s semiconductor mission builds on the country’s rapid growth in electronics manufacturing over the last decade.
According to the government:
- Electronics manufacturing has increased nearly seven times since 2014.
- Electronics exports have grown eleven times.
- India has become the world’s second-largest producer and exporter of mobile phones.
The government says the focus has now shifted towards developing domestic capabilities across semiconductor design, fabrication, assembly, packaging, materials, and critical minerals.
Semiconductor Ecosystem & Future Roadmap
The government believes the expanding semiconductor ecosystem will support emerging technologies such as:
- Artificial Intelligence (AI)
- Robotics
- Next-generation computing
- Advanced electronics manufacturing
According to Union Minister Ashwini Vaishnaw, India has already approved 12 semiconductor projects, with three plants currently operational and two more expected to begin operations in the coming months.
The government expects five semiconductor plants to be operational by the end of 2026.
Other key developments include:
- 24 deep-tech semiconductor startups
- More than 70,000 trained chip design professionals
- 315 universities offering semiconductor-related courses
- India’s first semiconductor fabrication plant under development in Dholera
Employment & Industry Development
The CG SEMI facility has generated employment opportunities across multiple states, including Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala, and Gujarat.
The government also highlighted that women employees were trained in Malaysia before joining production at the facility, with similar training programs expected to increasingly take place within India as the domestic semiconductor ecosystem matures.
During his visit, Prime Minister Modi toured the facility’s Experience Centre and Clean Room, interacted with engineers and operators, and witnessed the handover of the first product manufactured at the facility to Renesas Electronics India. According to the government, the inauguration marks another step toward strengthening India’s position in the global semiconductor value chain under the Atmanirbhar Bharat mission.
