Prime Minister Narendra Modi inaugurated CG Semi's ₹7,600 crore OSAT semiconductor facility in Sanand, Gujarat, marking India's third semiconductor plant to enter commercial production in 2026.
India's Third Semiconductor Plant Goes Live
Prime Minister Narendra Modi on July 4, 2026, inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat, alongside Union Minister Ashwini Vaishnaw and Gujarat CM Bhupendra Patel. Built with an investment of over ₹7,600 crore, this is India's first end-to-end OSAT plant and the country's third semiconductor facility to enter commercial production in 2026.
What is OSAT?
OSAT stands for Outsourced Semiconductor Assembly and Test — covering chip assembly, packaging, and testing, the critical final steps before a chip is ready for use (though not the same as fabricating chips from raw silicon). The plant, established by CG Semi Private Limited (part of the Murugappa Group's CG Power and Industrial Solutions), was developed with technology support from Japan's Renesas Electronics and Thailand's Stars Microelectronics.
Scale and Timeline
- Foundation stone laid: March 2024
- Chip testing began: August 2025
- Commercial production: July 2026
- Current capacity: 20 crore units annually, targeting 500 crore units/year
- Chips will serve automotive, industrial, and consumer electronics sectors, with exports planned to Japan, the US, and Europe
PM Modi's Key Remarks
Calling it the next phase of "Make in India" and part of the Viksit Bharat roadmap, PM Modi said India is building a complete electronics value chain — "first the product, then components, and now the semiconductor." He described Sanand as emerging into a global-style tech cluster, comparable to Silicon Valley and Taiwan's Hsinchu Science Park, with Micron and Kaynes Semicon already operating nearby.
Quick Facts for Revision
| Point |
Detail |
| Facility |
CG Semi OSAT, Sanand, Gujarat |
| Inaugurated by |
PM Narendra Modi, July 4, 2026 |
| Investment |
Over ₹7,600 crore |
| Partners |
CG Power (Murugappa Group), Renesas (Japan), Stars Microelectronics (Thailand) |
| Scheme |
India Semiconductor Mission (ISM) |
| India's 2026 plant count |
3 operational, 5 targeted by year-end |
Why This Matters for Competitive Exams
India Semiconductor Mission facilities, their locations, investment figures, and international partners are recurring topics in UPSC, SSC, and Banking current affairs.
Stay tuned to Recent Affairs for continuing coverage of India's economic and technology developments.
