CG SEMI’s Sanand facility begins commercial production, becoming India’s third operational semiconductor plant and strengthening the country’s chip manufacturing ecosystem.
Key Highlights
- CG SEMI begins commercial production in Sanand.
- Third semiconductor plant operational in India.
- Five chip plants expected by end of 2026.
- ₹7,600 crore investment with Renesas partnership.
- Chips to serve domestic and export markets.
- Over 70,000 students trained in chip design.
- Facility creates employment for youth across India.
India’s semiconductor manufacturing ambitions received a major boost as CG SEMI’s Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, officially started commercial production. Union Minister Ashwini Vaishnaw called the development the beginning of a new era for India’s semiconductor industry and an important milestone for the Atmanirbhar Bharat mission.
The minister said the Sanand facility has become the third semiconductor plant to begin commercial production in India this year. Out of the 12 semiconductor projects approved by the Central Government, three are now operational, while two more facilities are expected to start production in the coming months. By the end of 2026, India is expected to have five operational semiconductor plants, significantly strengthening the country’s electronics manufacturing ecosystem.
The facility has been developed with an investment of more than ₹7,600 crore in partnership with Renesas Electronics of Japan. According to the government, this collaboration will help India gain access to advanced semiconductor technologies, global manufacturing standards and international quality systems. Chips produced at the Sanand plant will be supplied to the automobile, industrial equipment and electronics sectors, while exports are planned for markets including Japan, Europe and the United States.
Shri Vaishnaw highlighted that India’s semiconductor ecosystem is expanding rapidly beyond manufacturing. More than 70,000 students have already been trained in chip design, 315 universities now offer semiconductor-related courses, and 24 deep-tech chip design startups have emerged across the country. He also said India’s first semiconductor fabrication plant at Dholera is progressing steadily.
Calling the project a symbol of social transformation, the minister noted that young women from states including Jharkhand, Bihar, Chhattisgarh, Madhya Pradesh, Jammu & Kashmir, Kerala and Gujarat are working at the facility after receiving specialised training abroad. He added that as India’s semiconductor ecosystem grows, world-class training opportunities will increasingly become available within the country.
The government believes the commercial production at CG SEMI marks another significant step towards establishing India as a trusted global semiconductor manufacturing destination. With increasing investments, international partnerships and a growing skilled workforce, the country is steadily building a complete semiconductor value chain under the Make in India initiative.
