Inaugurating the CG Semi OSAT facility in Sanand, Gujarat, the Prime Minister said Made-in-India semiconductors will power the country’s next wave of technology talent.
The recently opened CG Semi Outsourced Semiconductor Assembly and Testing Facility in Sanand, Gujarat, is considered a milestone in the country’s semiconductor ambitions, according to Prime Minister Narendra Modi. During the opening ceremony, he recounted how chip testing took place in August 2025 after he had laid the foundation stone of the facility in 2024. He thanked all of the engineers, workers and other industry partners who contributed to developing the CG Semi Outsourced Semiconductor Assembly and Testing Facility.
This facility was built with an investment of more than ₹7,500 crores; it is one of four projects approved under the India Semiconductor Mission and will ultimately provide an annual capacity to produce up to five billion chips to serve industries such as automotive, telecom, and IoT (internet of things).
A Global Technology Partnership
Modi described the project as a collaboration between Indian, Japanese, and Thai companies, framing it as an international alliance of trusted technological partners rather than just a business relationship. He stated that the newly created production facility has achieved an annual capacity of 20 crore units to date. That production/annual capacity will grow to 500 crore units.
Building an Industrial Ecosystem
Modi stated that, similar to how other major cities are known for their electronics manufacturing hubs (Silicon Valley, Hsinchu Science Park), Sanand has been developing a similar cluster, as other companies such as Micron and Kaynes are presently operating in this area, along with the businesses that provide supporting services like chemicals and design.
From Mobile Manufacturing to Chips
Modi noted that India had moved from dependence on other countries to becoming the second-largest producer of mobile phones globally, with its overall electronic manufacturing output multiplying by almost seven times since 2014. He indicated that India’s emphasis on developing domestic capabilities in producing critical minerals, designing chips, and packaging will be the major driver of future growth opportunities.
