CG Semi OSAT facility inauguration: PM Modi to launch ₹7,500 crore semiconductor plant in Sanand
Synopsis
India's semiconductor ambitions get their clearest proof of execution yet: PM Modi is inaugurating the CG Semi OSAT plant in Sanand — a ₹7,500 crore facility with a five-billion-chip annual capacity. With six of 12 approved national semiconductor plants concentrated in Gujarat, this inauguration marks the moment India's chip manufacturing push moves from policy to production line.
Key Takeaways
PM Narendra Modi will inaugurate the CG Semi OSAT facility in Sanand, Ahmedabad district on Saturday afternoon .
The plant was developed with an investment of more than ₹7,500 crore under the India Semiconductor Mission .
Annual production capacity will reach up to five billion semiconductor chips once fully operational.
The facility serves automotive, industrial, telecom, 5G, and IoT sectors with end-to-end assembly and testing services.
Of 12 approved semiconductor plants nationally, six are in Gujarat ; CG Semi is the third in the state to enter production.
The inauguration marks the commencement of commercial production — a first for the India Semiconductor Mission's approved project pipeline.
Prime Minister Narendra Modi is set to inaugurate the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Ahmedabad district, on Saturday afternoon, marking a landmark moment for India's domestic semiconductor manufacturing push. The plant, developed with an investment of more than ₹7,500 crore under the India Semiconductor Mission, is among the first four semiconductor projects approved by the Centre and signals the start of commercial production in the sector.
Modi's Remarks Ahead of the Visit
Ahead of his Gujarat visit, Prime Minister Modi shared his anticipation in a post on social media platform X, calling Sanand synonymous with cutting-edge innovation. 'Sanand has made a place for itself on the world map, synonymous with cutting-edge innovation and growth. I will be in Sanand tomorrow for the inauguration of the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility. It will be a momentous occasion for India's efforts in semiconductor manufacturing,' Modi wrote. He noted that the facility would serve sectors including automotive, industrial, telecommunications, 5G, and the Internet of Things (IoT).
What the Facility Offers
The CG Semi OSAT plant will provide end-to-end semiconductor assembly and testing services, covering wafer sorting, assembly, testing, package design, failure analysis, test programme development, product characterisation, and logistics support. Once fully operational, it will have an annual production capacity of up to five billion semiconductor chips, aimed at meeting growing demand across multiple technology-driven industries.
Gujarat's Central Role in India's Semiconductor Mission
Gujarat has rapidly emerged as the anchor state for India's semiconductor ambitions. Of the 12 approved semiconductor plants under the Mission, six are to be established in Gujarat. State Science and Technology Minister Arjun Modhwadia noted that the CG Semi facility is the third plant in the state to be brought into the production line. 'Under the guidance of Chief Minister Bhupendra Patel, Gujarat is leading this semiconductor revolution,' Modhwadia said. This concentration of projects underscores the state's positioning as a critical node in India's emerging chip manufacturing corridor.
Significance for India's Semiconductor Ecosystem
The inauguration is part of the Centre's broader effort to build a self-reliant domestic semiconductor manufacturing ecosystem and strengthen India's position in the global semiconductor value chain. Notably, this comes as nations worldwide race to secure chip supply chains following pandemic-era shortages that exposed deep dependencies on a handful of Asian manufacturers. India's push, backed by production-linked incentives and mission-mode funding, is an attempt to carve out a credible alternative manufacturing base. The CG Semi plant's commercial commencement is the most concrete proof of execution yet in that strategy.
What Comes Next
With commercial production now commencing, attention will shift to ramp-up timelines, order pipelines from domestic and global clients, and whether the remaining approved plants stay on schedule. Industry observers will also watch whether the Sanand facility can attract anchor customers in the automotive and 5G segments — two of the highest-growth end markets for semiconductors in India.
Point of View
But the harder question is execution at scale. India has approved 12 semiconductor plants, yet commercial production is only now beginning with the third facility in Gujarat — suggesting the pipeline is moving slower than the policy ambition. A five-billion-chip annual capacity sounds substantial, but it is a fraction of what automotive and 5G sectors will demand as India's electronics consumption accelerates. The real test is whether downstream anchor customers — particularly in automotive and telecom — commit to sourcing domestically, or whether the facility ends up chasing export markets in a segment already dominated by established Asian players. Without visible order books, capacity announcements remain aspirational.
NationPress
3 Jul 2026
Frequently Asked Questions
What is the CG Semi OSAT facility being inaugurated in Sanand?
The CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Ahmedabad district, is a semiconductor assembly and testing plant developed with an investment of more than ₹7,500 crore under the India Semiconductor Mission. It will have an annual capacity of up to five billion semiconductor chips and serve automotive, 5G, telecom, industrial, and IoT sectors.
When will PM Modi inaugurate the CG Semi OSAT plant?
PM Modi is scheduled to inaugurate the CG Semi OSAT facility in Sanand on Saturday afternoon, 5 July 2025. The visit was announced by Modi himself in a post on social media platform X on Friday.
How many semiconductor plants has India approved under the India Semiconductor Mission?
The Centre has approved 12 semiconductor plants under the India Semiconductor Mission. Of these, six are to be established in Gujarat, making the state the largest concentration of approved semiconductor projects in the country.
What services will the CG Semi OSAT facility provide?
The facility will offer end-to-end semiconductor services including wafer sorting, assembly, testing, package design, failure analysis, test programme development, product characterisation, and logistics support — covering the full post-fabrication value chain.
Why is the Sanand semiconductor plant significant for India?
It marks the commencement of commercial semiconductor production under the India Semiconductor Mission, making it one of the first such facilities in the country to move from approval to active production. It is part of India's broader strategy to build a domestic chip manufacturing ecosystem and reduce dependence on foreign semiconductor supply chains.
