On 4 July 2026 the Prime Minister inaugurated CG Semi’s Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat and commercial production commenced.
Facility, ownership and investment
- Joint venture: CG Power & Industrial Solutions 92.3%, Renesas Electronics (Japan) 6.8%, Stars Microelectronics (Thailand) 0.9%.
- Investment: Over ₹7,600 crore (USD 870 million) committed over five years.
- Employment: About 5,000 direct and indirect jobs projected over five years.
Production scale and outputs
- Initial capacity: 20 crore (200 million) chips per year.
- Target scale: Planned expansion to 500 crore (5 billion) chips per year.
- G1 unit: Began commercial production on 4 July 2026; peak capacity cited at 300 million units/year.
- End-uses and markets: Packaged chips for automobiles, scooters and industrial equipment; exports planned to Japan, United States and Europe.
- National context: Third semiconductor unit to enter commercial production in 2026 under the India Semiconductor Mission, after Micron (Feb) and Kaynes (Mar).
IASPOINT Booster Facts
- OSAT definition: Outsourced Semiconductor Assembly and Test — back-end processes for packaging, assembly and electrical testing of chips.
- Front-end vs back-end: Front-end = wafer fabrication (fabs); back-end = packaging and test (OSAT).
- Gujarat approvals: Six semiconductor projects totalling about USD 14.7 billion approved for the state.
- Programmatic anchor: India Semiconductor Mission coordinates investment and manufacturing under the central semiconductor initiative.