Prime Minister Narendra Modi is set to inaugurate the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand in Ahmedabad district, Gujarat on Saturday, 5 July 2025, marking the commencement of commercial production at one of India's first semiconductor assembly and testing plants developed under the India Semiconductor Mission. The Prime Minister's Office confirmed he will arrive in Sanand at around 4:30 pm and address a gathering following the inauguration.

What the CG Semi OSAT Facility Offers

The CG Semi OSAT plant has been developed with an investment of more than ₹7,500 crore and is among the first four semiconductor projects approved under the India Semiconductor Mission. The facility is designed to 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, the plant is projected to reach an annual production capacity of up to five billion semiconductor chips — a scale that would make it one of the largest such facilities in the country.

Sectors and Demand Drivers

The facility is expected to serve customers across the automotive, industrial, telecommunications, 5G, and Internet of Things (IoT) sectors. Demand is being driven by rapid advances in artificial intelligence (AI) and high-performance computing, which have sharply increased the need for memory and storage solutions globally. India's push into chip packaging and testing addresses a critical gap in the domestic electronics supply chain.

Significance for India's Semiconductor Ambitions

The Prime Minister's Office described the inauguration as 'a significant milestone in India's semiconductor manufacturing journey.' The Sanand project is expected to strengthen India's domestic semiconductor ecosystem by expanding advanced chip packaging and testing capabilities — an often-overlooked but strategically vital segment of the global semiconductor value chain.

Notably, this comes as countries worldwide race to build semiconductor self-sufficiency following supply-chain disruptions that exposed over-dependence on a handful of Asian manufacturing hubs. India's Semiconductor Mission is the Centre's primary policy vehicle to position the country as a credible alternative destination for chip manufacturing investment.

Modi's Gujarat Visit: Broader Agenda

The Sanand inauguration follows Modi's engagements in Rajasthan earlier on the same day, where he is scheduled to inaugurate the new terminal building at Jodhpur Airport, launch the Modified UDAN scheme, and dedicate, inaugurate, and lay the foundation stone for development projects worth approximately ₹1.06 lakh crore in Balotra. The Gujarat leg of the visit underscores the Centre's focus on industrial and infrastructure investment ahead of what analysts see as a critical phase in India's electronics manufacturing push.

With commercial production now set to begin, the Sanand facility's ramp-up trajectory and order pipeline will be closely watched as a bellwether for the broader India Semiconductor Mission's execution.