- Eyes a staggering 500cr production in a year and aim to develop the entire value chain of semiconductors and electronics within India.
- Four semiconductor facilities set to start in 2026.
Prime Minister Narendra Modi inaugurated the Rs7,600-crore CG Semi OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat — marking a watershed moment in India’s quest to establish itself as a global semiconductor powerhouse .
Addressing a gathering of industry leaders, government officials, and workers at the sprawling facility, PM Modi made a bold proclamation: India will soon achieve a daily production capacity of 1.5 crore (15 million) chips, as the Sanand region rapidly transforms into a full-fledged semiconductor manufacturing cluster.
A dream taking silicon form
The CG Semi plant represents the third semiconductor facility to commence commercial operations in India, following the commissioning of Micron Technology’s ATMP (Assembly, Test, Marking, and Packaging) facility in February 2026 and Kaynes Semicon’s OSAT plant in March 2026.
Together, these facilities signal that India’s semiconductor ambitions are no longer aspirational — they are operational.
“This journey from foundation stone to commercial production is the result of the hard work of many youngsters,” PM Modi remarked, crediting industry partners, the Gujarat government, and the dedicated workforce who made the rapid turnaround possible.
The plant has begun commercial production of semiconductor packaging and is expected to produce 20 crore (200 million) chips annually in its initial phase.
The company has outlined ambitious expansion plans, targeting a staggering 500 crore chips per year. Expressing confidence in the team, the Prime Minister declared: “You are not going to stop here… I have faith that more than 1.5 crore chips will be produced from here every day”.
Sanand: From auto hub to Silicon Valley
The inauguration underscores a dramatic transformation underway in Sanand. Long known as a major automobile manufacturing centre — home to plants from Tata Motors, Ford (formerly), and Maruti Suzuki — the industrial belt is now emerging as India’s first semiconductor cluster.
PM Modi recalled that earlier plans had envisioned allocating 300–400 acres of land near Gandhinagar and Sanand for semiconductor projects. With the commissioning of the CG Semi facility, that vision has materialised into a tangible industrial ecosystem. The cluster is expected to attract supporting industries for machinery, testing labs, and related services, creating a comprehensive semiconductor value chain.
Gujarat, the first Indian state to introduce a dedicated semiconductor policy, has secured six major semiconductor projects so far: Tata Electronics, Micron Technology, CG Semi, Kaynes Semicon, Suchi Semicon, and Crystal Matrix — representing cumulative investments worth $14.7 billion .
Beyond the numbers, PM Modi highlighted the deeply human dimension of India’s semiconductor story. He described the CG Semi facility as a “symbol of dedicated efforts,” noting the diverse, mini-India-like environment within the plant premises, where workers from different languages, cultures, and backgrounds contribute with high technical competence.
“Young women from Jharkhand, Madhya Pradesh, Kerala, Chhattisgarh, and other states are leading this transformation,” the Prime Minister said. “From humble families and ITI backgrounds to receiving advanced training in Malaysia, they are now manufacturing world-class semiconductor chips in Gujarat. Their journey reflects India’s rising confidence.”
This narrative — of young Indians from tier-2 and tier-3 cities acquiring cutting-edge skills and participating in a globally strategic industry — has become central to the government’s pitch for Atmanirbhar Bharat (Self-Reliant India).
A broader electronics revolution
PM Modi situated the semiconductor push within the larger context of India’s electronics manufacturing success story. Mobile phone manufacturing in India has grown 33 times since 2014, making the country the world’s second-largest mobile phone manufacturer. Overall electronics production has increased nearly 7 to 11 times during the same period.
“Our strategy is not limited to making finished products,” he emphasised. “We aim to develop the entire value chain of semiconductors and electronics within India.” This includes design, manufacturing, packaging, and testing — forming the roadmap towards a developed India, or Viksit Bharat.
The Prime Minister drew a parallel with India’s IT revolution, noting that just as millions of Indian youths showcased their talent during the software boom, the semiconductor era is now unlocking new opportunities in electronics manufacturing, innovation, and supply chain management.
PM Modi pointed to the “Design in India” initiative as the seed from which today’s semiconductor ecosystem has grown. “Just a few years ago, India resolved to become a semiconductor hub through the ‘Design in India’ initiative. Today, the country is witnessing the fruits of that vision with multiple plants becoming operational,” PM Modi said.
A global partnership
The CG Semi OSAT facility has been built in collaboration with US-based Renesas Electronics and Thailand’s Stars Microelectronics, reflecting the international nature of semiconductor supply chains. The plant specialises in the packaging and testing of semiconductor wafers — a critical, capital-intensive stage in chip production that sits between fabrication and final product integration.
With four semiconductor facilities now set to be operational through 2026, the India Semiconductor Mission (ISM) is gaining tangible momentum. Union Railway Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel also addressed the gathering, underscoring the coordinated effort between the Centre and the state .
The commissioning of CG Semi’s facility, alongside Micron’s ATMP plant and Kaynes Semicon’s OSAT unit, positions Sanand as a cornerstone of India’s semiconductor strategy. The broader ambition — encapsulated in the ISM 2.0 framework with Rs1,000 crore allocated for 2026–27 — is to build a self-sustaining ecosystem that spans design, fabrication, and advanced packaging .
