India Marks Semiconductor Milestone with Launch of OSAT Pilot Line in Gujarat
Union Electronics and IT Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel during the inauguration of one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) pilot line facilities at Sanand, Gujarat, on Thursday
Sanand, August 29: Union Electronics and IT Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel on Thursday inaugurated one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) pilot line facilities at Sanand, Gujarat. The facility, set up by CG Semi, marks a major milestone under the India Semiconductor Mission and is expected to play a pivotal role in positioning India as a global semiconductor hub.
Vaishnaw said the pilot line would be crucial for customer qualification of chips before commercial-scale production, adding that Gujarat will serve as a key driver of Bharat’s semiconductor ambitions. “By 2032, the world is projected to face a shortage of one million semiconductor professionals, and India is poised to bridge this gap,” he said. The Minister highlighted that the government has equipped 270 universities with advanced design tools, enabling 20 student-designed chips to be fabricated at SCL Mohali this year.
The Sanand OSAT plant is backed by an investment of ₹7,600 crore over five years to develop two facilities — G1 and G2. The G1 unit, inaugurated today, has a peak capacity of 0.5 million units per day and is equipped with advanced assembly, testing, and packaging systems. Customer qualification runs will begin shortly, with commercial production slated for 2026. The G2 facility, under construction, is expected to scale capacity to 14.5 million units per day by end-2026. Together, they are projected to generate over 5,000 direct and indirect jobs.
CG Power Chairman Vellayan Subbiah described the launch as “a national milestone,” reflecting collaboration between government and industry. “Every chip we make here is a step toward India’s technological sovereignty,” he said.
CG Semi — a joint venture of CG Power and Industrial Solutions, Renesas Electronics, and Stars Microelectronics — will offer comprehensive semiconductor assembly and test solutions across automotive, defence, infrastructure, and IoT sectors.
