The Chief Minister's Office of Gujarat on Saturday, 4 July 2026, announced live coverage of Prime Minister Narendra Modi inaugurating the commercial production launch of CG Semi's OSAT (Outsourced Semiconductor Assembly and Testing) facility at Sanand, Gujarat — marking a significant milestone in India's domestic semiconductor manufacturing push.

Context

The CMO Gujarat post, shared in Gujarati, reads: 'LIVE: માનનીય વડાપ્રધાન શ્રી નરેન્દ્રભાઈ મોદીના વરદ્હસ્તે સાણંદ ખાતે CG Semi કંપનીની OSAT સુવિધાના કોમર્શીયલ પ્રોડક્શનનો શુભારંભ' — translating to: 'LIVE: The auspicious commencement of commercial production at CG Semi Company's OSAT facility at Sanand, at the hands of the honourable Prime Minister Shri Narendra Modi.' The event was livestreamed, with the hashtags #SemiconHubBharat and #PMinSanand underscoring its national significance.

Sanand has steadily grown into one of Gujarat's most prominent industrial corridors, hosting large-scale manufacturing investments across the automotive, electronics, and chemical sectors. The township's infrastructure and connectivity have made it a preferred destination for high-technology industrial projects.

Policy Backdrop

The launch is a direct outcome of India's India Semiconductor Mission (ISM), established in 2021, which provides central government incentives for units engaged in chip fabrication, assembly, testing, and packaging. The mission is a cornerstone of the broader Atmanirbhar Bharat initiative, aimed at reducing India's dependence on imported semiconductors.

The Production Linked Incentive (PLI) scheme for IT hardware and semiconductors, also notified in 2021, offers financial support to approved projects, incentivising companies like CG Semi to set up OSAT capacity on Indian soil. Gujarat has positioned itself as a focal state for such investments, with state-level infrastructure support complementing central fiscal incentives.

Stakeholders and Impact

The commissioning of CG Semi's OSAT facility is expected to benefit semiconductor manufacturers across the supply chain by providing domestic assembly and testing services, reducing turnaround times and logistics costs associated with overseas processing. Gujarat's industrial workforce stands to gain through direct and ancillary employment generated by the facility.

India's semiconductor import bill has historically been substantial, and the establishment of OSAT capacity is seen as a critical first step in building an end-to-end domestic ecosystem. OSAT facilities handle the back-end stages of chip production — packaging, assembly, and testing — which are labour-intensive and well-suited to India's cost and skill profile.

What's Next

Attention will now turn to commercial production ramp-up timelines, employment generation numbers, and whether other semiconductor projects approved under the India Semiconductor Mission in Gujarat and other states will follow with similar launch announcements. The pace at which these facilities reach full operational capacity will be a key indicator of India's progress toward its goal of becoming a global #SemiconHubBharat.

With PM Modi personally presiding over the inauguration, the government has signalled that semiconductor self-reliance remains a top industrial priority — and that Sanand is at the centre of that ambition.