Sanand (Gujarat): Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat, describing it as a major milestone in India’s ambition to become a global semiconductor manufacturing powerhouse.
Addressing the gathering, the Prime Minister said the project reflects India’s ability to transform ambitious visions into reality through the combined strength of “Design in India” and “Make in India.” He noted that the country has steadily built a robust semiconductor ecosystem over the past few years, turning policy into production at an impressive pace.
Modi recalled that the facility’s foundation stone was laid in 2024 and highlighted its rapid progress, with chip testing commencing in 2025 before commercial production began this year. He credited engineers, industry partners and the state government for completing the project within a short timeframe.
One of the most special moments during the inauguration of the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand was the opportunity to interact with the youth who are working there. A large number of the workforce includes women. They hail from remote… pic.twitter.com/JNFlr6Gmnh
— Narendra Modi (@narendramodi) July 5, 2026
During his visit, the Prime Minister interacted with engineers and employees, praising the confidence, innovation and commitment of the young workforce driving India’s semiconductor ambitions.
Calling the project a model of international cooperation, Modi said the collaboration between Indian, Japanese and Thai technology partners would significantly strengthen India’s position in the global semiconductor value chain. He expressed confidence that the plant’s production capacity, currently estimated at 200 million semiconductor units annually, would eventually scale up to 5 billion units per year.
Congratulating everyone associated with the project, Modi said the facility marks another important step in building a self-reliant, technology-driven India.
India’s First End-to-End OSAT Facility
The CG Semi OSAT plant has been established by CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Ltd. under the Murugappa Group, at GIDC Sanand in Gujarat. It is India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facility.
The project received approval under the India Semiconductor Mission on March 8, 2024, and has been developed with technology support from Renesas Electronics and Stars Microelectronics.
The facility is equipped to manufacture and test a wide range of advanced and legacy semiconductor packages, including SOIC, QFP, QFN, BGA, FCQFN and FCBGA, catering to industries such as automotive, consumer electronics, industrial automation and 5G communications.
Following the inauguration of its pilot line in August 2025, the plant has now entered commercial operations with two manufacturing units, G1 and G2. The current production capacity stands at 200 million semiconductor units annually, with substantial expansion planned in subsequent phases.
The inauguration marks another significant milestone in India’s semiconductor roadmap as the country accelerates efforts to emerge as a trusted global hub for chip manufacturing, packaging and testing.
