PM Modi will inaugurate CG Semi Plant in Sanand today, commercial production of chip will start

New Delhi, 3 July. Prime Minister Narendra Modi will launch CG Semi’s Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on Saturday. This company will start supplying semiconductor chips on a commercial scale to customers across the country and the world. This project was approved by the Union Cabinet in February 2024 under the Bharat Semiconductor Mission.

OSAT facility built at a cost of Rs 7600 crore

CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Limited, has set up this OSAT facility in Sanand with an investment of Rs 7600 crore. Renesas Electronics of Japan and Stars Microelectronics of Thailand also have participation in this project. This project will further strengthen the semiconductor ecosystem of Sanand. According to Prime Minister Narendra Modi, the development of the semiconductor sector in India will prove to be the biggest technology turning point of this decade.

Will have the capacity to make 1.5 crore chips daily

After Micron and Keynes Semicon, the launch of CG Semi’s OSAT facility will also give impetus to local economic activities. Assembly, testing and packaging of semiconductor chips is done at the OSAT plant. The second plant of the company is also under construction. After the commissioning of both the facilities, a total production capacity of 1.5 crore chips per day will be developed.

Prime Minister will inspect the plant

Prime Minister Narendra Modi will also inspect various semiconductor manufacturing processes at the OSAT facility. During this time, Union Electronics and Information Technology Minister Ashwini Vaishnav, Gujarat Chief Minister Bhupendra Patel, State Minister of State for Home Harsh Sanghvi and Science and Technology Minister Arjun Modhwadia will be present with him. After this the Prime Minister will also address a public meeting.

Many sectors will benefit from automobile to 5G

Chips such as QFN (Quad Flat No-Lead), QFP (Quad Flat Package), FC-BGA (Flip Chip Ball Grid Array) and FC-CSP (Flip Chip Scale Package) will be manufactured in this facility. These will be used in areas like automotive, electronics, industrial equipment, 5G devices and power applications. The company currently employs more than 300 employees. After the operation of the plant, about 5000 direct and indirect employment opportunities are expected to be created in the next five years.

‘The aim is to create a complete ecosystem, not just a factory’

Prime Minister Narendra Modi has said that India’s aim is not to set up just a factory, but to develop the entire ecosystem of semiconductors. He said that India is now working on the entire value chain from design engineering to machine manufacturing and logistics. ‘India Semiconductor Mission 2.0’ is a big step in this direction. With increase in production, the demand for materials and components in the country will also increase, which will provide huge opportunities to local industries.

Gujarat is at the forefront in semiconductor mission

Gujarat is playing a leading role in taking forward India’s semiconductor mission. The state was the first to implement a dedicated semiconductor policy. At present six projects have been approved in Gujarat under the mission. These include Tata Electronics, Micron Technology, CG Semi, Keynes Semicon, Suchi Semicon and Crystal Matrix. A total investment of $14.7 billion is being made in these projects.

Sanand is becoming India’s chip packaging hub

Production of CG Semi is also going to start after Micron Technology’s ATMP facility in February 2026 and Keynes Semicon’s OSAT facility in March 2026. Recently Suchi Semicon and Crystal Matrix have also received approval to set up new semiconductor units. This will further strengthen Gujarat as a major semiconductor hub. Sanand, once known as an automobile hub, is now emerging as India’s first chip packaging cluster and an important hub of the global semiconductor value chain. It is being compared with semiconductor centers like Sinshu in Taiwan and Gyeonggi in South Korea.

Gujarat has prepared an industry-friendly ecosystem

Under the leadership of Chief Minister Bhupendra Patel, Gujarat has emerged as not only an investment hub but also a holistic semiconductor ecosystem of production, design, packaging, supply chain, skill development, research, logistics and innovation. The industry-friendly policies of the state government, modern infrastructure, fast approval process and effective administration are continuously boosting the semiconductor industry. This is why Gujarat is becoming a reliable manufacturing hub for global investors.