Semiconductor OSAT Facility Inaugurated in Gujarat
SANAND, Gujarat – O one of the nation’s first end-to-end Semiconductor OSAT Pilot Line Facilities has been set up in Sanand. It was inaugurated by Union Minister for Electronics and IT, Ashwini Vaishnaw, and Gujarat Chief Minister Bhupendra Patel. It represents a landmark leap for India’s technological sovereignty,
This state-of-the-art Semiconductor facility is established by CG Power in collaboration with Renesas Electronics and Stars Microelectronics. It marks a decisive step in India’s ambition to become a global hub for semiconductor design, assembly, and packaging.
Speaking at the inauguration, Vaishnaw highlighted the facility’s critical role. “This pilot line is where chips will be manufactured for customer qualification. Once approved, ithis Semiconductor OSAT Facility paves the way for commercial plants to begin full-scale production of qualified products seamlessly, the Minister stated. He desribed it as among the most significant milestones of the India Semiconductor Mission.
Bridging the Global Talent Gap
The Minister underscored a pressing global challenge: a projected shortfall of one million semiconductor professionals by 2032. He positioned India as the solution, stating, “India has the opportunity to bridge a significant part of this gap.”
To build this talent pipeline, the government has equipped 270 universities with state-of-the-art semiconductor design tools. The initiative is already yielding results. These tools have witnessed over 1.2 crore usages in 2025 alone. Notably, 20 chips designed by students from 17 institutions have been successfully fabricated at the Semi-Conductor Laboratory (SCL) in Mohali.
The CG Power OSAT Semiconductor Facility: A National Asset
The newly inaugurated CG Semi facility represents an investment of over ₹7,600 crore. Key features include:
Pilot Line Purpose: To produce chips for customer qualification, a vital step before commercial production.
Peak Capacity: The G1 facility aims for a peak capacity of 0.5 million units per day.
Job Creation: The project is expected to generate over 5,000 direct and indirect jobs.
Future-Ready: A larger G2 facility, with a capacity of 14.5 million units per day, is slated for completion by late 2026.
Vellayan Subbiah, Chairman of CG Power, hailed the project as a “national milestone.” He addes, “Every chip we make here is a step toward India’s technological sovereignty.”
With this launch, Gujarat cements its role as the cornerstone of India’s semiconductor ambitions. It brings the vision of an ‘Atmanirbhar Bharat’ one step closer to reality.
The CG Semi OSAT Facility – A Closer Look
The newly inaugurated CG Semi plant in Sanand is a cornerstone of India’s semiconductor ambitions. It is one of the country’s first full-scale Outsourced Semiconductor Assembly and Test (OSAT) facilities. It provides comprehensive end-to-end solutions—from assembly and packaging to testing and post-test services—for both traditional and advanced chips.
A Phased, Mega-Investment Project
Backed by strong government support, CG Semi is investing over ₹7,600 crore to develop two cutting-edge facilities:
The G1 Pilot Line: This facility has a peak capacity of 500,000 units per day. It is equipped with high-yield machinery, an advanced Manufacturing Execution System (MES) for automation, and in-house labs for quality control. Its immediate purpose is to produce chips for customer qualification, a critical step before full-scale commercial production begins in 2026.
The G2 Facility: Currently under construction just 3 km away and slated for completion by late 2026, G2 will be a volume powerhouse. It is designed to scale up to a massive capacity of 14.5 million units per day.
Together, these facilities are projected to create over 5,000 direct and indirect jobs, significantly boosting local employment.
Built on Expertise and Global Collaboration
CG Semi is a powerful joint venture between India’s CG Power (Murugappa Group), Japan’s Renesas Electronics Corporation, and Thailand’s Stars Microelectronics. To ensure operational excellence from day one, the company has assembled a management team with over 1,000 years of combined industry experience. It has already trained its Indian engineers and technicians at partner facilities in Malaysia.
This facility is not only a manufacturing unit. It is a testament to a successful public-private partnership. Overall, it marks a giant leap towards achieving India’s goal of technological self-reliance (‘Atmanirbhar Bharat’) in the critical semiconductor sector.
