Onlykashmir.in News Desk
New Delhi: In a historic step towards technological self-reliance, India has successfully launched its first indigenously developed semiconductor chip plant, a significant achievement under the “Make in India” initiative.
The facility, located in Sanand, Gujarat, was inaugurated by Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, and is set to produce India’s first “Made in India” semiconductor chips by the end of 2025.
Operated by CG Semi, in collaboration with Renesas Electronics and Stars Microelectronics, the pilot Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand represents a major leap in India’s quest to become a global semiconductor hub.
The plant, with an investment of over Rs 7,600 crore (approximately USD 870 million), has a peak capacity of 5 lakh chips per day and is equipped for end-to-end chip assembly, packaging, testing, and post-test services.
Prime Minister Narendra Modi, who has championed India’s semiconductor ambitions, hailed the development as a “game-changer” for the nation’s digital economy.
Speaking earlier this month, he emphasized that the facility will reduce India’s reliance on imported chips, which currently account for 90% of the country’s semiconductor needs.
“This is a step towards positioning India as a global leader in chip manufacturing,” Modi said, noting the plant’s role in sectors like automotive, telecom, and consumer electronics.
The CG Semi plant is part of a broader push under the India Semiconductor Mission, launched in 2021, which has allocated nearly INR 629 billion (USD 7.17 billion) to foster a robust semiconductor ecosystem.
The mission has spurred the development of eight semiconductor plants across India, including major projects in Gujarat, Assam, Odisha, Punjab, Andhra Pradesh, and Uttar Pradesh. Notably, Tata Electronics is constructing a Rs 91,000 crore fabrication unit in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC), aiming to produce 28-nanometer chips by 2026.
Union Minister Vaishnaw highlighted the strategic importance of the Sanand facility, stating, “The CG Semi pilot line is a milestone in India’s semiconductor journey. We expect the first chip to roll out soon, with full-scale operations by 2027.” The facility’s second phase, under construction, will scale up to 14.5 million chips per day.
The launch has garnered global attention, with companies like Foxconn, Micron, and Kaynes Semicon also investing in India’s semiconductor ecosystem. A joint venture between Foxconn and HCL Group in Uttar Pradesh, approved in May 2025, will produce 36 million chips per month for display drivers used in smartphones, laptops, and automobiles.
Industry experts view this as a critical step in reducing India’s dependence on global supply chains, especially amid geopolitical uncertainties. “While 28nm and 90nm chips may not be cutting-edge, they are vital for automotive, IoT, and legacy systems, making India a key player in global supply chains,” said an analyst from Pamir Consulting.
The government’s incentives, covering up to 50% of capital expenditure, have attracted significant investments, with over 20 companies expressing interest in setting up manufacturing plants. The US-India Semiconductor Partnership, backed by the US CHIPS Act, is further bolstering India’s capabilities through a USD 500 million investment over five years.
As India joins the global semiconductor race, the Sanand plant’s launch signals a new era of technological independence, positioning the country to meet its projected domestic semiconductor market growth from USD 38 billion in 2023 to USD 109 billion by 2030.
