India Opens First OSAT Pilot Line at Sanand, Marking Semiconductor Milestone

India’s semiconductor ambitions took a historic leap today with the inauguration of one of the nation’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) pilot line facilities by CG Power at Sanand, Gujarat. The ceremony was led by Union Minister of Electronics and Information Technology, Shri Ashwini Vaishnaw, along with Chief Minister of Gujarat, Shri Bhupendra Patel.

The launch represents a landmark milestone under the India Semiconductor Mission (ISM), which aims to build domestic capabilities in semiconductor design, manufacturing, packaging, and testing. It also reinforces Gujarat’s emergence as a national hub for semiconductor manufacturing, supported by proactive state and central government policies.

A Nationally Significant Milestone

Inaugurating the facility, Shri Ashwini Vaishnaw described the pilot line as a “decisive step in fulfilling Bharat’s dream” of developing world-class semiconductor ecosystems. He emphasized that chips produced at the pilot line would undergo customer qualification, paving the way for faster commencement of commercial production at scale.

“This inauguration is one of the most significant milestones under the India Semiconductor Mission. It will help India achieve technological sovereignty while creating a robust talent pool,” Shri Vaishnaw said.

He highlighted that ISM has so far approved 10 major projects and that the Sanand OSAT facility exemplifies the vision of Atmanirbhar Bharat in electronics manufacturing.

Building a Global Talent Base

The Minister also stressed the importance of talent development. By 2032, the world is projected to face a shortage of one million semiconductor professionals. To bridge this gap, India has:

• Partnered with 270 universities, equipping them with semiconductor design tools.

• Enabled over 1.2 crore usages of these tools in 2025 alone.

• Successfully fabricated 20 chips designed by 17 institutions at the Semi-Conductor Laboratory (SCL), Mohali.

This initiative, Shri Vaishnaw said, ensures that India’s youth gain hands-on exposure to advanced design tools, making India a global hub of semiconductor talent.

Gujarat’s Growing Role

Chief Minister Shri Bhupendra Patel lauded the launch as a transformative development for Gujarat, which has positioned itself as a leader in semiconductor and electronics manufacturing. He reiterated the state government’s commitment to providing infrastructure, policy support, and skilled manpower to ensure the success of semiconductor projects.

The inauguration was also attended by State Industries Minister Shri Balwant Singh Rajput, MLA Shri Kanhubhai Patel, senior MeitY officials, and the leadership of CG Semi.

Inside the CG Semi OSAT Facility

The Sanand OSAT project is being developed in two phases:

• G1 Facility (Pilot Line, inaugurated today)

  • Investment: Part of ₹7,600 crore (~USD 870 million) over five years.

  • Peak capacity: 0.5 million units per day.

  • Capabilities: End-to-end chip assembly, packaging, testing, and post-test services.

  • Features: High-yield equipment, advanced Manufacturing Execution System (MES) with Level 1 automation, in-house reliability and failure analysis labs.

  • Certification: Undergoing ISO 9001 and IATF 16949.

  • Commercial production expected in 2026 after customer qualification runs.

• G2 Facility (under construction, 3 km away)

  • Completion: End of 2026.

  • Peak capacity: 14.5 million units per day.

  • Together, G1 and G2 will create over 5,000 direct and indirect jobs.

Industry Perspective

Mr. Vellayan Subbiah, Chairman of CG Power, called the inauguration a “national milestone”, noting that the facility is proof of industry-government collaboration at scale.

“Every chip we make here is a step toward India’s technological sovereignty,” he said.

To ensure readiness, CG Semi has sent Indian engineers, operators, and technicians for three months of training in Malaysia, enabling them to rapidly scale operations once production ramps up.

Strategic Partnerships and Global Collaboration

CG Semi is a joint venture bringing together:

• CG Power and Industrial Solutions Ltd. (Murugappa Group)

• Renesas Electronics Corporation (Japan) – a global semiconductor leader

• Stars Microelectronics (Thailand) – a specialist in OSAT & EMS services

The joint venture combines global expertise with India’s growing talent pool to deliver advanced packaging technologies, including SOIC, QFP, QFN, BGA, FCQFN, and FCBGA packages. Its target applications span automotive, defence, infrastructure, and IoT industries.

Looking Ahead

With the launch of the OSAT pilot line, India has taken a major stride in its semiconductor roadmap. By building domestic capabilities in assembly and testing—critical links in the semiconductor value chain—India is positioning itself not only to achieve self-reliance but also to emerge as a global supplier in the industry.

The Sanand OSAT is expected to catalyze ecosystem development, attract further investments, and support India’s aspiration of becoming a semiconductor hub for the world.