Modi Launches CG Semi Chip Manufacturing Plant in Gujarat, Marking Major Semiconductor Milestone
Prime Minister Narendra Modi inaugurated the CG Semi OSAT semiconductor manufacturing plant in Sanand, Gujarat, where commercial production has begun with an initial capacity of 0.5 million chips per day. Backed by a ₹7,600 crore investment, the project strengthens India's semiconductor ecosystem, supports high-skilled employment, and reduces dependence on imported chips.
The OSAT facility has been established as a joint venture between CG Power, Renesas Electronics of Japan, and Stars Microelectronics of Thailand. Developed with an investment of ₹7,600 crore and supported by government incentives, the project is designed to substantially expand India's semiconductor manufacturing capabilities. The company plans to increase production capacity to 15 million chips per day through two manufacturing plants.
The semiconductor chips produced at the Sanand facility will cater to a wide range of industries, including automotive, industrial equipment, telecommunications, fifth-generation mobile networks, and Internet of Things applications. The project is expected to strengthen domestic supply chains, reduce dependence on imported semiconductor components, and enhance India's position in the global semiconductor industry.
With the commencement of commercial production at the CG Semi facility, Sanand now hosts three semiconductor manufacturing facilities launched this year. The expansion reinforces Gujarat's emergence as a major semiconductor manufacturing hub while creating high-skilled employment opportunities and contributing to India's long-term strategy of achieving greater self-reliance in the global semiconductor supply chain.

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