CG Semi Opens India’s First Chip Assembly Plant in Sanand

The first chip built in India will be released by CG Semi, a division of CG Power and Industrial Solutions, from its Sanand, Gujarat, facility. Ashwini Vaishnaw, the Union minister of electronics and information technology, opened the facility Thursday and announced that Prime Minister Narendra Modi would "soon" dedicate the chip made there. "This marks a significant turning point in our nation's semiconductor history," he continued.

As the first full-service supplier of outsourced semiconductor assembly and test (OSAT) in India, the Murugappa Group Company’s facility seeks to provide solutions for both conventional and cutting-edge  technologies  for packaging. In a statement, the company added,

"This represents a significant step in enhancing India's semiconductor capabilities and supporting the nation's objective of being self-reliant while also servicing global market."

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With a daily capacity of 0.5 million units, the first facility, dubbed G1, was officially opened on Thursday. It can manage testing, packaging, post-test services, and end-to-end chip assembly. In partnership with Renesas and Stars Microelectronics, and with backing from the federal and state governments, CG Semi is spending more than Rs 7,600 crore over five years to build two OSAT sites (G1 and G2) in Sanand.

With a projected peak capacity of 0.5 million, commercial production in the G1 plant is scheduled to start in 2026. The G2 plant is presently being built and is anticipated to be finished by the end of 2026. It will have a maximum capacity of about 14.5 million units per day. It is anticipated that the two factories will generate more than 5,000 direct and indirect jobs in the area.