The Chief Minister's Office of Gujarat announced on Saturday, 4 July 2026, that Prime Minister Narendra Modi inaugurated the commercial production at CG Semi's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, marking a significant milestone in India's semiconductor manufacturing ambitions.

The post stated in Gujarati: 'માનનીય વડાપ્રધાન શ્રી નરેન્દ્રભાઈ મોદીના વરદ્હસ્તે આજે સાણંદ ખાતે CG Semi કંપનીની Outsourced Semiconductor Assembly and Test (OSAT) ફેસિલિટીના કોમર્શીયલ પ્રોડક્શનનો શુભારંભ કરવામાં આવ્યો હતો.' — 'Under the auspicious hands of the Honourable Prime Minister Shri Narendra Modi, commercial production was inaugurated today at CG Semi's OSAT facility in Sanand.'

Context

Sanand, an industrial township in Gujarat, has been developed over the past decade into one of India's premier electronics and automotive manufacturing clusters. The launch of CG Semi's OSAT facility marks the first major commercial-scale semiconductor assembly and testing operation to go live in the state. Senior dignitaries present at the event included Chief Minister Bhupendra Patel, Union Minister for Electronics and IT Ashwini Vaishnaw, Deputy Chief Minister Harsh Sanghavi, Science and Technology Minister Arjun Modhwadia, and leading figures from the semiconductor industry.

Policy Backdrop

The inauguration is a direct outcome of India's India Semiconductor Mission, approved in 2021 with an outlay of Rs 76,000 crore to incentivise fabrication, assembly, testing, and packaging units across the country. The mission forms the centrepiece of the Atmanirbhar Bharat programme's push for electronics self-reliance, with OSAT and fab projects approved in Gujarat, Assam, and other states to build an end-to-end domestic supply chain. Gujarat has actively positioned Sanand and allied sites as preferred semiconductor destinations through dedicated state policies and land allocation.

Union Minister Ashwini Vaishnaw has been the principal architect of the India Semiconductor Mission at the central level, shepherding approvals and coordinating with state governments. His presence at the Sanand launch underscores the Centre's close involvement in ensuring project milestones are met on schedule.

Stakeholders and Impact

OSAT facilities perform the critical back-end steps of semiconductor manufacturing — assembling bare chips into usable packages and testing them for performance — functions that global chip supply chains depend on heavily. The CG Semi plant at Sanand is expected to serve domestic electronics manufacturers as well as export markets, reducing India's dependence on overseas assembly hubs in Malaysia, Taiwan, and Vietnam. Semiconductor firms, consumer electronics producers, automotive component makers, and defence electronics suppliers are among the primary stakeholders who stand to benefit from a locally available OSAT ecosystem.

For Gujarat, the facility reinforces the state's ambition — articulated by Chief Minister Bhupendra Patel — to become India's leading semiconductor manufacturing hub, attracting further upstream and downstream investment in the chip value chain.

What's Next

Attention will now turn to the rollout timelines of other approved semiconductor units under the India Semiconductor Mission, including additional fab and OSAT projects at various stages of construction and approval. Any further investment announcements from Gujarat — particularly around advanced packaging or chip design clusters — will be closely watched by industry and policymakers alike. The Sanand launch sets a tangible benchmark: that India's semiconductor ambitions have moved from policy intent to operational reality, with commercial chips now being assembled on Indian soil.