Prime Minister Narendra Modi is set to inaugurate the CG Power Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat on 5 July 2025, marking the state's third operational semiconductor project under the India Semiconductor Mission. The plant, built with an investment of over ₹7,500 crore, will commence commercial production immediately after inauguration.

What the CG Semi OSAT Facility Offers

The Sanand plant will deliver 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 ramped up, it is expected to produce up to 5 billion semiconductor chips annually, serving customers in the automotive, industrial, telecommunications, 5G, and Internet of Things (IoT) sectors.

The facility is among the first four semiconductor projects approved by the Centre under the India Semiconductor Mission, which aims to build domestic chip manufacturing capabilities and reinforce India's position in the global electronics supply chain.

Gujarat's Semiconductor Ambitions

State Science and Technology Minister Arjun Modhwadia on 4 July 2025 said the inauguration represents a defining moment for Gujarat's emergence as India's semiconductor capital. 'There was no semiconductor manufacturing ecosystem in India. However, due to the initiative taken by our successful Prime Minister Narendra Modi, around 12 semiconductor plants have now been approved in the country,' he said.

Of the 12 approved plants, six are to be established in Gujarat, collectively representing investments of approximately ₹1.70 lakh crore. Minister Modhwadia credited Chief Minister Bhupendra Patel for Gujarat's lead position in what he described as the 'semiconductor revolution.'

The Pipeline: From Micron to Tata

Prime Minister Modi had previously inaugurated the Micron Semiconductor and Kaynes facilities in Gujarat, making the CG Power OSAT plant the third project to go operational. The pipeline of upcoming projects is substantial.

The Tata semiconductor fabrication plant at Dholera, being developed with an investment of ₹91,000 crore, is expected to begin production in 2027. The remaining approved projects include Crystal Matrix at Dholera and Suchi Semicon in Surat. Together, these facilities span Sanand, Dholera, and Surat — three distinct industrial corridors within the state.

National Context and What It Signals

India had virtually no domestic semiconductor manufacturing ecosystem until recently. The India Semiconductor Mission, backed by the Centre, has since catalysed rapid capacity addition. This is the third such inauguration in Gujarat under the Mission, reflecting an accelerating pace of implementation.

Notably, the focus on OSAT — assembly and testing rather than full fabrication — reflects a pragmatic entry point into the global chip supply chain, where India can build scale and expertise before moving upstream into wafer fabrication. The Tata Dholera fab, expected in 2027, will mark that next step.

With ₹1.70 lakh crore in semiconductor investments converging on Gujarat, the state is positioning itself as the anchor of India's chip ambitions — and the CG Semi inauguration is the latest proof point of that trajectory.