TL;DR
Modi has inaugurated commercial production at CG Semi’s $870 million OSAT plant in Sanand, Gujarat, which will initially package 200 million chips a year and expand to 500 million. It is the third packaging plant to come into operation under the India Semiconductor Mission, after Micron and Kaynes Semicon.
Prime Minister Narendra Modi inaugurated commercial production at CG Semi’s chip assembly and testing plant in Sanand, Gujarat. The facility will initially produce 200 million chips per year, according to ANNIwith plans to scale to 500 million.
The plant is an outsourced semiconductor assembly and testing, or OSAT, facility. This covers the packaging and testing end of the chip supply chain rather than manufacturing silicon from scratch.
CG Semi is a joint venture between Mumbai-listed CG Power and Industrial Solutions, Japan’s Renesas Electronics and Thailand’s Stars Microelectronics. CG Power owns 92.3% of the company, which is investing Rs 7.6 billion (around $870 million) over five years.
The 💜 of EU technology
The latest rumors from the EU tech scene, a story from our wise founder Boris and some questionable AI art. It’s free, every week, in your inbox. Register now!
New Delhi covers up to half of eligible capital expenditure through a Subsidy worth up to $404 million. under the India Semiconductor Mission. The same program recently entered Intel and 3DGS for $3.3 billion glass substrate plant in Odisha.
The chips packaged in Sanand will largely go into cars, scooters and industrial equipment. Exported to Japan, the United States and Europe.. The plant is expected to create around 5,000 direct and indirect jobs over the next five years, according to local reports.
Third floor offline
CG Semi is not the first packaging plant in India to come online. Micron Facilities in Sanand started operations in February and Kaynes Semicon followed in March.
Six semiconductor projects worth a combined $14.7 billion have been approved in Gujarat, including ventures from Tata Electronics and Suchi Semicon. Sanand is becoming the country’s first chip packaging group.
At full speed, CG Semi has said the site could handle 15 million units per day, a maximum annual capacity of about 4.7 billion chips. It will produce legacy packages such as QFN and QFP along with advanced FC BGA and FC CSP formats for automotive, consumer, industrial and 5G customers.
Packaging first, factories later
The launch fits into a broader charm offensive. Modi has courted tens of billions in AI infrastructure commitments from Amazon, Google and Reliance, and India has joined the US-led group. Pax Silica Alliance in chip supply chains.
Governments around the world are subsidizing local chip capacity, from The EU flagship factory in Dresden to the Washington CHIPS Act, in a The growing global race for technological supremacy. India’s bet is to dominate packaging first and manufacturing second.
Speaking at the inauguration, Modi termed the growth of semiconductors as the next phase of “Make in India” and pledged to develop the entire electronics value chain. The question the coming years will answer is whether Sanand packaging lines can anchor that ambition.
