Union IT Minister Ashwini Vaishnaw has announced that India’s first homegrown semiconductor chip will soon be launched from CG Semi’s pilot OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat. The inauguration of this unit marks a significant step in India’s journey toward self-reliance in chipmaking and represents one of the earliest concrete outcomes of the country’s semiconductor mission.

The Sanand facility has been established with an investment of around ₹7,600 crore, making it one of the largest projects in India’s electronics manufacturing sector. CG Semi, a joint venture involving CG Power and Industrial Solutions along with partners Renesas Electronics of Japan and Stars Microelectronics of Thailand, is positioned as one of the first companies in India to provide full-fledged OSAT services.

According to the minister, the pilot line will be capable of producing nearly half a million chips daily once fully operational. This output, though initially focused on testing and packaging, sets the stage for scaling up into larger volumes and advanced semiconductor capabilities in the near future.

The launch of this facility comes at a time when global demand for chips is surging, and nations are seeking to secure reliable supply chains. For India, the rollout of its first semiconductor chip is more than just a technological achievement—it is a strategic milestone that reduces dependence on imports and strengthens the country’s position in the global electronics ecosystem.

The Sanand plant reflects how coordinated efforts between government and industry can accelerate progress. By combining policy support, financial investment, and international expertise, India is creating the foundation for a sustainable semiconductor manufacturing base that could transform the country into a major global hub.