Sanand: Prime Minister Narendra Modi on Saturday inaugurated the commercial production of semiconductor chips at CG Semi’s OSAT facility in Sanand. Following the inauguration, the company will begin supplying semiconductor chips to customers across India and overseas.

The project was approved by the Union Cabinet in February 2024 under India’s Semiconductor Mission. CG Semi Pvt. Ltd., a subsidiary of CG Power and Industrial Solutions Limited, has set up the OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand with an investment of ₹7,600 crore. The company has entered into a joint venture with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics.

The commissioning of the facility is expected to further strengthen Sanand’s emerging semiconductor ecosystem. Following the inauguration of Micron’s semiconductor facility and the launch of Kaynes Semicon’s plant, CG Semi’s OSAT unit marks another major addition to Gujarat’s semiconductor manufacturing landscape and is expected to boost the local economy.

OSAT, which stands for Outsourced Semiconductor Assembly and Test, involves the assembly, testing and packaging of semiconductor chips before they are supplied to customers. Construction of CG Semi’s second plant is already underway. Once both facilities are operational, they will have a combined production capacity of 1.5 crore chips per day.

The Sanand facility will manufacture legacy packages such as QFN and QFP, as well as advanced FC-BGA and FC-CSP packages, catering to the automotive, consumer electronics, industrial equipment, 5G and power electronics sectors.

The company currently employs more than 300 people. The project is expected to generate around 5,000 direct and indirect employment opportunities over the next five years.