Delhi: India’s semiconductor manufacturing programme reached another milestone as CG SEMI’s OSAT facility in Sanand, Gujarat, commenced commercial production. Union Minister Ashwini Vaishnaw said the development reflects the country’s rapid progress in building a self-reliant semiconductor ecosystem, with five semiconductor plants expected to be operational by the end of 2026.
Announcing the start of commercial operations, Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology Ashwini Vaishnaw said the Sanand facility marks a new phase in India’s semiconductor journey. He described the achievement as a key outcome of the government’s efforts to establish a strong domestic chip manufacturing ecosystem under the leadership of Prime Minister Narendra Modi.
The minister noted that the Sanand unit has become India’s third semiconductor plant to begin commercial production this year. Of the 12 semiconductor projects approved by the central government, three are now operational, while the remaining projects continue to progress toward production. According to Vaishnaw, five semiconductor plants are expected to be producing chips by the end of 2026, providing fresh momentum to the country’s Atmanirbhar Bharat mission.
Built in partnership with Renesas Electronics, Japan, the facility was developed in 27 months following its groundbreaking on 13 March 2024. The project involved an investment of more than ₹7,600 crore and will manufacture semiconductor products for automobiles, scooters and industrial equipment. The chips produced at the facility will serve both domestic demand and export markets, including Japan, the United States and Europe.
Vaishnaw also highlighted the social impact of the project, noting that young women from Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala and Gujarat have secured employment as operators at the plant. Many have also undergone specialised training in Malaysia, with similar training capabilities expected to expand within India as the domestic semiconductor ecosystem matures.
The minister said India’s semiconductor ecosystem has made significant progress over the past four years. Alongside manufacturing projects, 24 deep-tech chip design startups have emerged, over 70,000 engineers have received chip design training, and 315 universities now offer semiconductor design-related courses. He added that India’s electronics manufacturing sector has grown into an industry valued at nearly ₹13 lakh crore, supporting more than 25 lakh jobs.
The commencement of commercial production at the CG SEMI facility is expected to strengthen India’s position in the global semiconductor value chain while supporting the country’s long-term objective of becoming a trusted destination for advanced electronics manufacturing.
Source: This article is based on an Official press release issued by the Press Information Bureau, Ministry of Electronics & IT, Government of India
Press Release Page | Press Information Bureau
