Chips produced at Gujarat’s CG Semi OSAT plant to be shipped to Japan, US, Europe: Ashwini Vaishnaw

Semiconductor chips manufactured at the newly launched CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, will serve automotive and industrial sectors, with a sizeable share destined for export to Japan, the United States, and Europe, Union Electronics and Information Technology Minister Ashwini Vaishnaw said on Saturday.

Addressing the inauguration ceremony, Vaishnaw described the plant as a significant advance in India’s ambition to create a globally competitive semiconductor ecosystem and establish itself as an exporter of cutting-edge chip technologies.

“Chips produced here will power cars, two-wheelers, and a range of industrial equipment. Most importantly, chips made in India at this facility will reach markets in Japan, America, and Europe. Indian technology will gain worldwide recognition,” he said.

He added that the development underscores India’s growing credibility within the global semiconductor value chain, as locally produced chips begin serving both domestic and international markets.

Vaishnaw attributed the milestone to the Union government’s sustained efforts to build a semiconductor manufacturing base in India.

“The Prime Minister’s vision has turned what was once thought impossible into reality. His decisive commitment to establishing a semiconductor industry in India has now borne fruit,” he said.

The Sanand unit will assemble, package, and test semiconductor chips before their deployment in sectors such as automotive and industrial electronics, while also supplying overseas customers, further integrating India into the global chip ecosystem.

Prime Minister Narendra Modi on Saturday inaugurated commercial production at CG Semi’s OSAT facility in Sanand.

The Union Cabinet cleared the project in February 2024 under the India Semiconductor Mission. CG Semi Pvt Ltd, a subsidiary of CG Power and Industrial Solutions Limited, has set up the plant with an investment of ₹7,600 crore. The company has formed a joint venture with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics.

The launch is expected to boost Sanand’s semiconductor cluster. Prime Minister Modi has said the rapid expansion of India’s chip sector could make this decade a defining phase in the country’s technological advancement.