India has taken a decisive step in building its semiconductor manufacturing ecosystem. On August 28, 2025, the Union Minister of Electronics and IT, Shri Ashwini Vaishnaw, and Gujarat Chief Minister Shri Bhupendra Patel jointly inaugurated CG Semi’s OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facility in Sanand, Gujarat.
This new facility is one of India’s first end-to-end OSAT plants. It supports chip assembly, packaging, testing, and post-test services. These are critical downstream activities in the semiconductor value chain. The launch is a key milestone under the India Semiconductor Mission, which aims to make the country self-reliant in chip manufacturing.
India’s talent push in semiconductors
A major highlight of the announcement was India’s focus on developing semiconductor talent. According to the Minister, the world could face a shortage of one million semiconductor professionals by 2032. India wants to fill a significant part of this gap.
To support this goal, the government has equipped over 270 universities with advanced chip design tools. These tools have already been used more than 1.2 crore times in 2025 alone. As a result, students from 17 institutions have designed 20 chips that were fabricated at SCL Mohali.
This early success shows how academia and industry can collaborate to build talent pipelines. Very few countries provide students access to such tools, giving India a strategic edge.
Inside the CG Semi facility
CG Semi is a joint venture between CG Power (Murugappa Group), Renesas (Japan), and Stars Microelectronics (Thailand). Backed by ₹7,600 crore in investments, the company is building two facilities in Sanand—G1 and G2.
The newly launched G1 facility can process 0.5 million chips per day. It includes high-yield tools, automation systems, and labs for quality testing. It is on track to begin full-scale commercial production by 2026.
The G2 facility, still under construction, will be ready by late 2026. It will raise total capacity to 14.5 million units per day. Together, the plants are expected to create over 5,000 jobs.
India’s semiconductor journey is still in its early phase. But with government support, private investment, and a skilled talent pool, it is on track to become a global hub in the coming decade.
