Gujarat: On August 28, 2025, India witnessed a landmark moment in its semiconductor journey with the inauguration of one of the country’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) pilot line facilities. The state-of-the-art facility, established by CG Semi Private Limited in Sanand, Gujarat, signals a decisive step toward making Bharat a global semiconductor hub under the visionary leadership of Prime Minister Shri Narendra Modi. The inauguration ceremony was graced by Union Minister of Electronics and Information Technology Shri Ashwini Vaishnaw and Gujarat Chief Minister Shri Bhupendra Patel.
Advancing India’s Semiconductor Ecosystem: The OSAT Pilot Line
The newly inaugurated G1 facility at Sanand is designed for comprehensive semiconductor chip assembly, packaging, testing, and post-test services, serving as a critical bridge between design and full-scale commercial production. Operating at a peak capacity of approximately 0.5 million units per day, the pilot line will facilitate customer qualification runs that are vital for product approval ahead of mass manufacturing.
Minister Shri Ashwini Vaishnaw emphasized that this project embodies a major milestone within the India Semiconductor Mission (ISM), under which ten projects have already been approved. The pilot line’s outputs will be instrumental in qualifying chips for customers across diverse industry sectors including automotive, consumer electronics, and IoT devices. The facility also incorporates cutting-edge manufacturing execution systems (MES) for Level 1 automation, in-house labs for reliability and failure analysis, and is working toward ISO 9001 and IATF 16949 certifications.
Gujarat’s Pivotal Role & Investment Landscape
With a planned investment of over ₹7,600 crore (~USD 870 million) over five years, CG Semi’s two-facility setup in Sanand — the operational G1 and the upcoming G2 facility — will significantly bolster India’s semiconductor self-reliance. The G2 facility, currently under construction and expected to be operational by late 2026, will scale production massively, with an expected capacity of approximately 14.5 million units per day.
This expansion is set to generate over 5,000 direct and indirect jobs, transforming Gujarat into a core pillar of the nation’s semiconductor ecosystem. Officials, including Chief Minister Shri Bhupendra Patel, reaffirmed the State’s commitment to supporting this sector and positioning India as a global leader in semiconductor design and manufacturing.
Building Talent to Bridge Global Shortages
Understanding the critical global semiconductor talent shortage anticipated by 2032—estimated at one million specialists—the Indian government has firmly committed to developing a robust talent pipeline. Through strategic partnerships with 270 universities, India has deployed advanced semiconductor design tools, achieving over 1.2 crore usages in 2025 alone. This initiative has already yielded tangible results with 20 chips designed by 17 institutions successfully fabricated at the Semi-Conductor Laboratory (SCL), Mohali.
Minister Vaishnaw highlighted that such empowerment of youth, with access to world-class technology and education, is rare on the global stage and crucial to strengthening India’s technical ecosystem and semiconductor sovereignty.
Industry Collaboration and Future Outlook
CG Semi Private Limited is a joint venture collaborating CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation (Japan), and Stars Microelectronics (Thailand). The team includes industry veterans collectively boasting over 1,000 years of semiconductor experience, underlining the sector’s maturity and readiness for rapid scaling.
Chairman of CG Power, Mr. Vellayan Subbiah, described the facility as “a national milestone” epitomizing the synergy of government and industry in achieving technological sovereignty. Workforce readiness has been a priority, with trained engineers and operators undergoing hands-on learning internationally to ensure operational excellence.
Looking ahead, the facility is on track to commence commercial production by 2026, laying the foundation for India’s rise as a semiconductor powerhouse and accelerating Atmanirbhar Bharat’s vision.
Conclusion
The launch of the pilot line facility in Sanand, Gujarat, stands as a transformative milestone in India’s semiconductor journey, blending visionary governance, industry collaboration, and skill development. With strong investment backing and Gujarat playing a central role, India is poised to bridge global semiconductor talent gaps and establish itself as a significant global player in chip design, manufacturing, and assembly.
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Source: PIB
