A historic beginning to India’s semiconductor journey under Prime Minister Narendra Modi’s vision was marked by the opening of the nation’s first end-to-end Semiconductor OSAT Pilot Line Facility in Sanand, Gujarat, by Union Minister of Electronics and Information Technology Shri Ashwini Vaishnaw and Gujarat Chief Minister Shri Bhupendra Patel.
India aims to become one of the top five semiconductor nations by 2032, with an emphasis on chip design, sophisticated packaging, and talent development. Minister of Electronics and Information Technology Ashwini Vaishnaw announced these goals, emphasising SEMICON India 2025 as a crucial forum for worldwide partnerships and investments. The government has allocated $10 billion to the first phase of India’s Semiconductor Mission (ISM).
Global technology companies, particularly Taiwan and Japan, are investing in India’s semiconductor sector by leveraging the country’s weak points. India has launched ten semiconductor fab projects, costing Rs 1.6 lakh crore, across six states. The first Made-in-India chip is expected to be released later this year in Sanand, Gujarat.
The launch of the OSAT Pilot Line in Gujarat is a key step towards Bharat’s aim of expanding semiconductor design, production, and downstream capabilities. Shri Vaishnaw emphasised the importance of the line, noting that chips produced there would be utilised for customer qualification, making it simpler for commercial plants to begin full-scale manufacturing of approved goods. This is one of the most significant milestones completed by the India Semiconductor Mission, which has authorised 10 projects to date.
The India Semiconductor Mission intends to build a worldwide pipeline of skilled professionals to overcome a one-million semiconductor professional shortfall by 2032. The government has collaborated with 270 institutions to provide sophisticated semiconductor design tools, which are already being utilised in over 1.2 crore applications by 2025. As a result, 20 chips designed by 17 institutions were successfully manufactured at the Semiconductor Laboratory in Mohali.
The CG Semi facility in Sanand, Gujarat, is India’s first full-scale Outsourced Semiconductor Assembly and Test plant, providing comprehensive chip assembly, packaging, testing, and post-testing solutions, thereby strengthening India’s semiconductor capabilities and promoting self-reliance while serving global markets.
CG Semi is investing ₹7,600 crore (~USD 870 million) over five years in building two advanced facilities in Sanand, Gujarat. The G1 facility will provide chip assembly, packaging, testing, and post-test services. It has high-yield equipment, a MES for automation and traceability, and internal labs for reliability and failure analysis. The plant is now receiving ISO 9001 and IATF 16949 certifications. Customer qualifying will begin following the inauguration. CG Semi is on pace to begin commercial production in 2026.
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Speaking at the inauguration, Mr. Vellayan Subbiah, Chairman, CG Power, 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.”