Semiconductor facility to begin commercial production.

CG Semi, Sanand pic.twitter.com/MEZkyAmbSx

Union Minister Hails a New Era for India's Semiconductor Sector

Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Shri Ashwini Vaishnaw, today said India has entered a new era in the semiconductor sector, as the CG SEMI (OSAT) facility in Sanand, Gujarat commenced commercial production, becoming the country's third semiconductor plant to do so this year, and CG SEMI's second facility. He said a robust semiconductor manufacturing ecosystem is taking shape under the Prime Minister's visionary leadership, one that will serve as the foundation for a developed India.

Thanking Prime Minister Shri Narendra Modi, Gujarat Chief Minister Shri Bhupendra Patel, and Deputy Chief Minister Shri Harsh Sanghavi, Shri Vaishnaw credited the Gujarat government's active cooperation and effective execution for enabling the plant to move from groundbreaking to commercial production in just 27 months.

Third Plant in 27 Months: India's Semiconductor Sprint

Shri Vaishnaw noted that the Prime Minister had earlier launched the country's first and second semiconductor plants on 28 February and 31 March 2026 respectively, and that with this third plant now in commercial production, global confidence in India's semiconductor capability and reliability has strengthened further.

Of the 12 semiconductor projects approved by the central government, three are now in commercial production, with two more set to be inaugurated in the coming months. By the end of 2026, five semiconductor plants are expected to be operational across the country, momentum Shri Vaishnaw said would boost the Atmanirbhar Bharat mission.

A Story of Social Change

Shri Vaishnaw described the plant as not just a technical achievement but also a symbol of social change. Young women from Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala, and Gujarat are finding employment as operators at the facility, having travelled to Malaysia for specialised training. He added that as India's own semiconductor ecosystem matures, similar world-class training could increasingly be made available within the country itself.

From Sanand to the World

Shri Vaishnaw said chips manufactured at the facility will serve automobiles, scooters, and industrial equipment domestically, while also being exported to Japan, the United States, and Europe, positioning India as a meaningful contributor to the global semiconductor supply chain.

He noted that the facility's groundbreaking was held on 13 March 2024, with an investment of over ₹7,600 crore, and that it was built in partnership with Renesas Electronics, Japan, giving India access to global semiconductor technologies, manufacturing practices, and quality systems.

Building an Ecosystem, Not Just a Plant

Shri Vaishnaw noted that over the past four years, India's semiconductor sector has seen substantial progress: 12 semiconductor units are currently under construction, 24 deep-tech chip design startups have emerged, over 70,000 young people have been trained in chip design, and 315 universities now offer semiconductor design-related courses. He added that India's first semiconductor fab, coming up in Dholera, is progressing rapidly.

He further noted that India's electronics manufacturing sector has grown into an industry worth close to ₹13 lakh crore, supporting over 25 lakh jobs, progress he said would establish India as a global technology power.

Strengthening India's Position in the Global Value Chain

Prime Minister Shri Narendra Modi graced the occasion, touring the facility's Experience Centre and Clean Room, interacting with operators and engineers, and unveiling the plaque marking the commencement of commercial production, following which the Chairman of CG SEMI handed over the facility's first product to the Global Vice President and President, Renesas Electronics India.

The event was attended by Gujarat government ministers, Members of Parliament, MLAs, industry representatives, senior officials of CG SEMI, and young engineers and staff from across the country.

Shri Vaishnaw said the commencement of commercial production at the CG SEMI facility marks another significant step towards strengthening India's position in the global semiconductor value chain, reinforcing the country's emergence as a trusted and self-reliant destination for semiconductor manufacturing, and establishing India as a rising global technology power.

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Dharmendra Tewari / Dr. Nayan Solanki / Vanshita Jaiswal / Kanishk Sharma