India’s CG Semi Begins Chip Production in Sanand

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India's CG Semi Begins Chip Production in Sanand

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India’s semiconductor manufacturing ambitions reached a new milestone on July 4, 2026, as CG Semi Pvt. Ltd. began commercial production at its Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. Prime Minister Narendra Modi inaugurated the plant, which has an initial annual capacity of 200 million chips and aims to eventually scale up to 5 billion chips per year. This development is a key part of India’s broader strategy to build a robust domestic chip industry and integrate into the global semiconductor supply chain.

The CG Semi facility is a joint venture between India’s CG Power and Industrial Solutions Ltd., Japan’s Renesas Electronics America Inc., and Thailand’s Stars Microelectronics (Thailand) Public Co. Ltd. The project, approved by the Union Cabinet in February 2024 under India’s Semiconductor Mission, represents an investment of approximately ₹7,600 crore (around $870 million). The plant will manufacture a diverse range of semiconductor packages, including traditional QFN and QFP, as well as advanced FC BGA and FC CSP, catering to sectors such as automotive, industrial equipment, consumer electronics, telecommunications, and 5G.

The inauguration of this facility follows other significant developments in India’s semiconductor landscape, including the operationalization of Micron Technology’s ATMP facility in February 2026 and Kaynes Semicon’s OSAT facility in March 2026. Union Minister for Electronics and IT Ashwini Vaishnaw had previously stated in January 2026 that four companies would commence commercial manufacturing of semiconductor chips in India during the year. India’s semiconductor market was valued at approximately US$38 billion in 2023 and is projected to reach around US$109 billion by 2030. The government has approved 12 semiconductor projects under the India Semiconductor Mission, with a cumulative investment of about ₹1.64 lakh crore (approximately $17.31 billion). The goal is to reduce India’s reliance on semiconductor imports and position the country as a significant player in the global

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