Prime Minister Narendra Modi has officially inaugurated the CG Semi Private Limited's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, signaling a major leap forward for India's semiconductor ambitions. The facility, a joint venture between Murugappa Group’s CG Power & Industrial Solutions, Japan's Renesas Electronics, and Thailand's Stars Microelectronics, commenced commercial production over the weekend.
A Milestone for Semicon India Program
During the inauguration, Prime Minister Modi highlighted the rapid progress of the project, recalling that the foundation stone was laid in 2024, chip testing began by August 2025, and now, in July 2026, the plant is fully operational. He emphasized that the CG Semi plant is not merely a business venture but a "model of technology, trust, and partnership" involving India, Japan, and Thailand.
Modi stated that the facility is further proof that the "Semicon India Program is gaining momentum – step by step, brick by brick, and now chip by chip." The plant currently boasts an annual capacity of 200 million chips, with ambitious plans to scale up to 5 billion chips, or 15 million chips per day.
From Groundbreaking to Shipping: India's Semiconductor Journey
Vellayan Subbiah, Executive Vice Chairman of CG Power, underscored the significance of the milestone, noting that India's semiconductor journey has transitioned "from ground-breaking to shipping." He confirmed that chips are already being shipped from the Sanand facility and have been qualified by several customers.
Subbiah previously articulated the critical need for an integrated semiconductor ecosystem, which encompasses design, wafer fabrication (fabs), and OSAT. He stressed that all three components are vital for India to establish itself in the global semiconductor value chain, including capital equipment manufacturing.
The Call for More Industry Players
Looking ahead, Subbiah emphasized that the current momentum needs to be sustained and expanded. He called for at least "ten more companies" to join India's semiconductor efforts, advocating for competition to accelerate the country's progress in this strategic sector. This collective push is essential to build a robust supply side and stimulate demand, making semiconductors a national priority.
The inauguration of the CG Semi plant represents a tangible outcome of India's strategic focus on indigenous semiconductor manufacturing, aiming to reduce reliance on foreign supply chains and foster technological self-reliance.