First Outsourced Semiconductor Assembly and Test (OSAT) Four Member Group Venture Pilot Line at Sanand, Gujarat

· Major Milestone in India’s Semiconductor Journey as one of India’s first end-to-end OSAT Pilot Line Facility Launched in Sanand, Gujarat

· By 2032 World to Face 1 Million Semiconductor Talent Shortfall; India Poised to Bridge the Gap and Lead in Semiconductor Talent

· Gujarat to Play Pivotal Role in Making Bharat a Global Semiconductor Hub

· Government Empowers Universities with State-of-the-Art Tools, Yields 20 Student-Designed Chips at SCL Mohali

Union IT Minister Ashwini Vaishnaw and Gujarat CM Bhupendra Patel inaugurated CG Power’s Semiconductor OSAT Pilot Line Facility at Sanand, Gujarat on 28 August 2025, marking a major milestone in India’s semiconductor journey under the India Semiconductor Mission (ISM). The facility will manufacture chips for customer qualification, enabling smoother transition to commercial-scale production.

The Minister highlighted India’s focus on building semiconductor design and manufacturing capabilities, supported by partnerships with 270 universities and advanced design tools that enabled the fabrication of 20 chips from 17 institutions at SCL Mohali. He emphasized India’s potential to bridge the projected global shortage of one million semiconductor professionals by 2032.

CG Semi’s ₹7,600 crore investment includes two OSAT facilities—G1, inaugurated with a peak capacity of 0.5 million units/day, and G2, under construction with a capacity of 14.5 million units/day. Together, they are expected to create over 5,000 jobs. The facility, backed by central and state support, represents a significant step towards India’s self-reliance and positioning as a global semiconductor hub.

[ABS News Service/29.08.2025]

Union Minister of Electronics and Information Technology, Ashwini Vaishnaw along with Chief Minister of Gujarat Shri Bhupendra Patel inaugurated one of India’s first end-to-end Semiconductor OSAT Pilot Line Facility of CG Power at Sanand, Gujarat on 28 August, 2025. The ceremony marks a historic beginning in India’s semiconductor journey under the visionary leadership of Prime Minister Narendra Modi.

Speaking on the occasion, the Minister said that the inauguration of the pilot line represents a decisive step in fulfilling Bharat’s dream of developing semiconductor design, manufacturing, and downstream capabilities, with Gujarat emerging as a pivotal hub in this transformation. Mr. Vaishnaw underlined the critical role of the OSAT Pilot Line, noting that chips manufactured here will be used for customer qualification. Once these chips are approved, it becomes much easier for commercial plants to commence full-scale production of qualified products. He emphasized that this inauguration is among the most significant milestones achieved under the India Semiconductor Mission, which has approved ten projects so far.

Highlighting the importance of developing a strong talent base, the Minister said that one of the major objectives of the India Semiconductor Mission is to create a global pipeline of skilled professionals. By 2032, the world is projected to face a shortage of one million semiconductor professionals, and India has the opportunity to bridge a significant part of this gap.

To this end, the Government has partnered with 270 universities and equipped them with state-of-the-art semiconductor design tools. In 2025 alone, these tools recorded over 1.2 crore usages. As a direct outcome, 20 chips designed by 17 institutions have already been successfully fabricated at the Semi-Conductor Laboratory (SCL), Mohali.

The Minister stated that very few countries in the world provide students with access to such advanced tools. He added that this initiative will empower India’s youth, strengthen the technical ecosystem, and position the nation as a global hub of semiconductor talent. He also acknowledged the strong support of the Government of Gujarat and Chief Minister Bhupendra Patel in developing semiconductor ecosystem in Gujarat.

Chief Minister Bhupendra Patel lauded the initiative, highlighting its role in positioning the country as a leader in semiconductor design and manufacturing. The State Industries Minister, Balwant Singh Rajput. MLA Kanhubhai Patel, and senior officials of MeitY and the leadership of CG Semi were also present on the occasion.

About CG Semi OSAT Facility

The CG Semi facility at Sanand, Gujarat, is one of India’s first full-scale Outsourced Semiconductor Assembly and Test (OSAT) plants. It provides end-to-end solutions for chip assembly, packaging, testing and post-test services, covering both traditional and advanced packaging technologies. This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets.

Backed by central and state government support, CG Semi is investing over ₹7,600 crore (~USD 870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat.

The G1 facility, inaugurated today, will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis. It is currently undergoing ISO 9001 and IATF 16949 certification. Customer qualification runs across various packages will begin following the inauguration. CG Semi is on track to commence commercial production in calendar year 2026, as committed to ISM.

Located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.

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.”

To build and operate the OSAT, CG Semi has brought together a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also made significant strides in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training—ensuring a faster learning curve and readiness for high-volume operations.

With this launch, CG Semi is poised to play a pivotal role in advancing India’s Atmanirbhar Bharat vision and strengthening the nation’s semiconductor ecosystem.

About CG Semi

CG Semi is a joint venture between CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation (a global semiconductor player), and Stars Microelectronics (a Thailand-based OSAT & EMS player). Headquartered in Sanand, Gujarat, CG Semi provides comprehensive turnkey solutions for semiconductor assembly and test, covering advanced and legacy packages such as SOIC, QFP, QFN, BGA, FCQFN, and FCBGA. The company serves diverse applications across industries such as Automotive, Defence, Infrastructure, and IoT.