CG Semi inaugurates nation's first OSAT facility at Sanand, Gujarat

CG Semi has inaugurated the nation's first-ever outsourced semiconductor assembly and test (OSAT) facility at Sanand, Gujarat.

Girish Chaturvedi, Chairman, CG Semi welcomed the audience. He said: "Today marks a significant milestone in India's semiconductor journey. India can deliver world-class semiconductor products at scale. CG Semi is proud to be among the first providers from India to bring traditional and advanced packaging technologies."

He thanked their partners, Renesas, Japan, and STARS Microelectronics, Thailand. Our commitment is to make CG Semi a trusted global partner, and to build cutting-edge semiconductor packaging technology in India. This is a historic step towards India's chip sovereignty and Aatmanirbhar Bharat.

Ashwini Vaishnaw, Minister of Railways, Minister of Information and Broadcasting and Minister of Electronics and Information Technology, and Bhupendrabhai Patel, CM, Gujarat, pressed the button to inaugurate the landmark facility. 

Vellayan Subbiah, Chairman, CG Power, and Director, CG Semi, said we will design for Bharat, make for Bharat, and we will build Bharat. The Sanand site has two facilities. First, a 75,000+ sq. ft. of built-up area with 150 million+ units of capacity. Second, a 10L+ sq. ft. of built-up area with 4 billion+ units of capacity. Both facilities have been engineered to operate for more than half a century, with zero liquid discharge, 70% recycled water, and full back-up utilities. 

Here, semiconductor wafers come to life. They are grinded, diced, and attached. They are bonded, encapsulated, tested, and packaged. These can be used for industrial, automotive, and infrastructure, to IoT. This facility is now India's first indigenous OSAT.  We are building India's semiconductor future.

P. Bharati, Secretary, Department of Science & Technology (DST), said it is a privilege to be present for Prarambh. Driven by the vision of our PM, we now have the policy initiatives for creating a world-class semiconductor ecosystem. An OSAT facility is an integral part of the semiconductor value chain. The Sanand OSAT facility will become a contributor to the global value chain in the years ahead.

Sushil Pal, Joint Secretary, MeitY, said semiconductor are the backbone. India's self-reliance and resilience are very important. India is now taking care against vulnerabilities. Policies undertaken by the Central Government, and Government of Gujarat, has also played a critical role here. 

We are very thankful for the Central Government's commitment for the semiconductor sector. A public-private partnership is the true enabler for India's semiconductor milestone. Ceremonies like these are the statement for India's self-reliance, and an intent to be globally competitive.

Step forward for India's technological sovereignty

Vellayan Subbiah, Chairman, CG Power, noted that one bold beginning can redefine history. In 1953, Edmund Hillary and Tenzing Norgay became the first in the world to scale the Mount Everest. They left the others a path to follow. For India, it has been a challenge to become relevant in the semiconductor industry. Today, CG Semi has taken that first step. 

Many questioned India's ability to be relevant in semiconductors. This facility is more than a milestone for CG. It is now a national milestone. It shows the government and the industry can come together with conviction, capital, and scale. Every chip that we make here is a measure of India's capability.

The road ahead is long! To build on this launch, three things are required. First, the industries must support each other, and embrace domestically-made chips. We must start towards making chips, and using chips that are made here, in India. When the Chinese industry gave their chips the scale, they went on to supply to the world. If we can do the same, India can meet our own growth needs, and also become a truly global supplier.

Second, we must develop Indian talent, and bring Indians back. About 20% of semiconductor engineers worldwide are Indians. Many Indian professionals succeed abroad. China claims that about 85% of students studying abroad return home. We need this to happen for India. At CG Semi, we are committed to nurturing and growing the home-grown talent. We also pledge to welcome back Indians who have studied or worked abroad. Each returnee brings exposure, strength, and ideas.

Third, we must invest in R&D to become global leaders of our times. It demands design skills, intellectual property, and innovation. India must invest deeply in R&D. This means collaboration with universities and government labs to design chips, firmware, and secure patents. Over time, we aspire to produce semiconductors, and be among the leaders in shaping next-gen technologies.

We are now laying the foundation stones so that many others can rise with us, and after us, in the future. This is the beginning of the journey that will define India's technological future.

Balvantsinh Rajput, Industry Minister, Gujarat, said it is great pride to inform that CG Semi's OSAT facility is starting. Gujarat is on the way to becoming a semiconductor hub. Gujarat's manufacturing model is now a great example for others. When India decided to move ahead with semiconductors, Gujarat has stood up. Semiconductors are required everywhere, and for everything. We are now taking steps to expand the ecosystem. Gujarat is also becoming the nation's semiconductor hub.

India an emerging semiconductor hub
Ashwini Vaishnaw, Minister of Railways, Minister of Information and Broadcasting and Minister of Electronics and Information Technology, expressed his best wishes to Gujarat government, CG Semi, and people, for the semiconductor projects. He said that we have started well, and the road ahead will be even better. What an efficient team that Team Gujarat has turned out! It has pulled off the project in record time!!

We are now talking about semiconductors and the dream. We have realized that dream, thanks to PM Narendra Modi. We are seeing CG Power's pilot line is starting now. Very soon, the PM will showcase the first chip to the country. It will probably take a week's time. The pilot line is very important, and, that will be used for qualifying the chips for the customers.

He added that construction of Micron and Kaynes semiconductor plants are also going on at a very good pace. As part of the Semiconductor Mission, we also have an objective of developing a talent pipeline. We have taken up a larger target. Globally, there is said to be a talent shortfall of 1 million for semiconductors by 2032. We now have the opportunity to fulfil the large gap clearly visible to everybody.

We also partner with 270 universities today. We have provided the latest tools to these universities, from Siemens EDA, Cadence, and Synopsys, etc. The students are also making good use of these tools. In 2025 itself, about 1.2 crore hours of usage has already happened. The result: 20 chips that were designed by 17 institutions, have now been taped out at a semiconductor lab in Mohali! That's a great achievement!

Imagine, students have designed these chips that are now getting fabricated. There are very few who can claim like this in the world. India is soon going to become a superpower, thanks to the young generation, in the future.

India is an emerging semiconductor hub today. Gujarat is leading this progression, and has a very big role to play. Gujarat also made the very first semiconductor policy. They executed the policy rapidly. CG Power is now the first to produce a chip, made in Gujarat. He congratulated the CG Semi, ISM, and Gujarat teams for their achievements.

India third-largest economy soon
Bhupendrabhai Patel, CM, Gujarat, stated that Gujarat recently approved Rs, 2,526 crore for expanding the railways network till the very end of Kutch. We are confident that India will soon become the world's third-largest economy. India's contribution to the global economy could reach about 20% soon. India's credit ratings have also been upgraded.

He also talked about Operation Sindoor, where the Indian army defeated the enemy using domestically-produced equipment. India is no less than any developed nation today, and we are proud to carry forward the role of Aatmanirbhar Bharat.

Semiconductors are really a special sector. Today, there is lot of investment happening in the Indian semiconductor industry. The Indian government had approved CG Semi's semiconductor plant in Nov. 2024. This plant is now about to start production within a period of less than a year. That itself is a significant achievement for India.

With the starting of CG Semi's semiconductor plant, we can now hope to be among the global leaders in semiconductors in the future. Gujarat has always been among the first states to develop and deliver on PM Modi's vision.

Gujarat was also the very first state of India to launch a semiconductor policy. Gujarat government will do everything to promote the semiconductor sector, now, and in the future. Under PM Modi's leadership, the government has approved four semiconductor units for Gujarat. The Made-in-India chips from Gujarat will propel India towards self-reliance. 

Gujarat is fast becoming the growth engine, and gateway to the future for India. Over 100 out of the top 500 global companies are already present in Gujarat. We are also among the best performers for ease of doing business, and startups. Gujarat has also emerged as the best investment destination.

We are now going to start a Vibrant Gujarat regional conference. It will provide more speed to small-scale and cottage industries. We need to boost manufacturing with even more self-reliant technology. We need to focus more on Make in India, and Make for the World.

Ashok Chandak, CEO and President: SEMI India and IESA, stated: "The inauguration of CG Semi Pvt Ltd's Pilot Production facility in Sanand marks a significant leap in India’s semiconductor manufacturing journey. Coming just ahead of the SEMICON India 2025 mega event, this milestone showcases India’s capability to deliver high-tech manufacturing at scale.

"The partnership between CG Power, Renesas Electronics, and Stars Microelectronics combines proven global expertise with local strengths, laying the foundation for a robust semiconductor value chain. With its upcoming OSAT facility will supporting automotive, consumer, Industrial and communication applications, CG Semi will play a key role in strengthening value added domestic manufacturing and synchronizing demand–supply linkages.

"We congratulate our member Renesas, and CG Power and partners for this achievement, which reaffirms India’s position on the global semiconductor stage and our steady progress towards technological self-reliance Bharat."