India's Semiconductor Leap: A New Era Begins with SG Power's OSAT Facility

Vellayan Subbiah, the Chairman of CG Semi Limited, highlighted the significance of SG Power's Outsourced Semiconductor Assembly and Test (OSAT) facility inauguration, declaring it a pivotal moment for India's semiconductor sector. Subbiah expressed excitement about India's burgeoning capabilities in chip production during the opening ceremony of CG Power's plant in Sanand.

"This is an exhilarating time for India. Owning locally-made chips marks a dream for us, and this is the first instance of it happening," Subbiah remarked. "I view this as the genesis of a vibrant semiconductor ecosystem in India." The inauguration also saw support from the government, with Union Minister Ashwini Vaishnaw attending the event.

The OSAT facility will package and test semiconductor chips post-manufacture. Vaishnaw noted that Prime Minister Narendra Modi is expected to inaugurate the country's first chip produced at this site soon. The CG Power project, in collaboration with global partners, involves a Rs 7,600 crore investment, with substantial governmental fiscal support reflecting India's ambition to emerge as a semiconductor hub.

In January, a Fiscal Support Agreement highlighted this commitment, underlining the Program for Semiconductor Development and Display Manufacturing Ecosystem in India, launched in December 2021 with a Rs 76,000 crore budget under the India Semiconductor Mission.

So far, 10 projects in six states have received government approval, totaling investments of approximately Rs 1.60 lakh crore. Recently, four new semiconductor projects were approved, promising to generate significant employment and bolster India's electronics manufacturing capacity.