Prime Minister Narendra Modi on Sunday inaugurated the commercial production of CG Semi’s ₹7,600-crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, marking a major step in India’s efforts to become a global semiconductor manufacturing hub.
The advanced facility will undertake semiconductor assembly, packaging and testing—critical stages before chips are integrated into products such as smartphones, electric vehicles, consumer electronics, telecom equipment and industrial devices. The launch is expected to strengthen India’s semiconductor supply chain and reduce dependence on overseas packaging and testing services.
Addressing the gathering, Prime Minister Modi said the inauguration marks another milestone in India’s journey towards self-reliance in advanced technology. He highlighted that Sanand has now achieved a “semiconductor hat-trick”, with three major chip-related projects coming up in the region, reinforcing Gujarat’s position as a preferred destination for high-tech manufacturing investments.
The Prime Minister said the facility reflects growing confidence among global and domestic companies in India’s semiconductor ecosystem. He added that the Centre’s semiconductor policy, coupled with world-class infrastructure and skilled talent, is attracting large investments into the country.
The state-of-the-art OSAT plant is equipped with advanced manufacturing technologies and is expected to produce high-quality semiconductor packages for both domestic and international markets. Besides strengthening India’s electronics manufacturing capabilities, the project is expected to create thousands of direct and indirect employment opportunities and support the growth of ancillary industries, including logistics, precision engineering and component manufacturing.
With commercial production now underway, the Sanand facility is expected to play a key role in meeting the rising demand for semiconductor components across sectors such as automotive, artificial intelligence, consumer electronics and telecommunications.