**EDS: THIRD PARTY IMAGE** On this screengrab from a video posted on July 4, 2026, Prime Minister Narendra Modi inspects the CG Semi Outsourced Semiconductor Meeting and Check (OSAT) facility, in Sanand, Gujarat. (@NarendraModi/YT through PTI Photograph)(PTI07_04_2026_000403B)
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Greater than 75 engineers packed their baggage and relocated to Gujarat from the Philippines, South Korea, the USA and Malaysia to assist construct CG Semi’s ₹7,500-crore Outsourced Semiconductor Meeting and Check (OSAT) facility at Sanand. On Saturday, Prime Minister Narendra Modi inaugurated the plant, making it solely the third semiconductor facility in India to start business manufacturing prior to now 5 months.
On the store ground, these engineers now work alongside younger girls from Chhattisgarh, Jharkhand, Madhya Pradesh, Gujarat, Jammu & Kashmir and Kerala, lots of whom had by no means stepped exterior their villages earlier than travelling to Malaysia for specialised semiconductor coaching.
Collectively, they embody two ends of India’s semiconductor story—world experience flowing into the nation and a first-generation manufacturing workforce being educated to provide chips destined for markets throughout Japan, the USA and Europe. “Over 75 of our colleagues moved to Gujarat from the Philippines, South Korea, the USA and Malaysia. They got here right here not merely to construct a manufacturing facility however to assist construct India’s functionality,” mentioned Vellayan Subbiah, chairman of CG Energy and Industrial Options Ltd, whose subsidiary CG Semi has developed the ability in partnership with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics.
For Subbiah, the undertaking’s significance lies as a lot in capability-building as in manufacturing. “It’s deeply symbolic that our first cargo goes to world buyer Renesas Electronics, our Japanese companion,” he mentioned. “Our companion Renesas taught us what being actually world class means. Their qualification requirements had been powerful. Very powerful. By assembly these requirements, we not solely earned the belief of our clients but additionally confidence in what superior Indian manufacturing is able to attaining,” he added.
The chips packaged on the Sanand plant will discover their method into vehicles, scooters and industrial gear earlier than being exported to Japan, the USA and Europe, Union Electronics and IT Minister Ashwini Vaishnaw mentioned. The minister additionally highlighted the workforce behind the ability. “Daughters from Chhattisgarh, Jharkhand, Madhya Pradesh, Gujarat, Jammu & Kashmir and Kerala shall be working as operators on the plant. A few of them stepped out of their villages for the primary time and went to Malaysia for coaching,” he mentioned.
Unfold over 75,000 sq. toes, the newly inaugurated facility has the capability to package deal about 300 million semiconductor models yearly. Proper subsequent to it, a second plant spanning practically a million sq. toes is already underneath development and is anticipated to extend capability to 4 billion models a 12 months.
For PM Modi, the plant can also be proof of a semiconductor ecosystem starting to take form. Inside months of Micron Know-how, Kaynes and now CG Semi commencing business manufacturing in Sanand, the area is starting to resemble the manufacturing clusters that remodeled nations equivalent to Taiwan, South Korea and China. “Step-by-step, brick by brick and chip by chip, the Semicon India programme is catching tempo,” the Prime Minister mentioned, including that semiconductor clusters ultimately appeal to suppliers of chemical compounds, testing laboratories, gear service firms, chip designers and startups.
Modi mentioned the back-to-back commissioning of semiconductor amenities by Micron, Kaynes Semicon and now CG Semi in Sanand marks the emergence of a semiconductor manufacturing cluster in India. Such clusters, he mentioned, create a multiplier impact by attracting suppliers of specialty chemical compounds, testing laboratories, gear upkeep firms, chip design corporations and startups, step by step constructing an built-in semiconductor ecosystem quite than standalone manufacturing models. “At the moment chips are being packaged right here; tomorrow specialised firms will come… That is the power of a cluster,” he mentioned.
CG Semi’s facility provides to the fast build-out of Gujarat’s semiconductor ecosystem underneath the India Semiconductor Mission. The state has secured six main semiconductor tasks involving investments of about ₹1.24 lakh crore. Apart from CG Semi, Micron Know-how and Kaynes Semicon have already commenced business manufacturing at their OSAT amenities in Sanand, whereas Suchi Semicon’s pilot OSAT plant is operational in Surat. Tata Electronics is setting up India’s first business semiconductor fabrication (fab) facility at Dholera, and Crystal Matrix has obtained approval to arrange the nation’s first business mini and micro-LED show fabrication and packaging unit at Dholera SIR.
Printed on July 4, 2026
