India’s first full-scale end-to-end outsourced semiconductor assembly and test (OSAT) pilot line facility of CG Power and Industrial Solutions Limited was launched at Sanand, Gujarat.
In the remarks at the inauguration, union minister of Electronics and Information Technology said that the inauguration of the pilot line represents a decisive step in fulfilling Bharat’s dream of developing semiconductor design, manufacturing, and downstream capabilities, with Gujarat emerging as a pivotal hub in this transformation. He underlined the critical role of the OSAT pilot line, noting that chips manufactured here will be used for customer qualification. Once these chips are approved, it becomes much easier for commercial plants to commence full-scale production of qualified products.
Further, highlighting the importance of developing a strong talent base, the minister said that one of the major objectives of the India Semiconductor Mission (ISM) is to create a global pipeline of skilled professionals. By 2032, the world is projected to face a shortage of one million semiconductor professionals, and India has the opportunity to bridge a significant part of this gap.
Similarly, chief minister (CM) of Gujarat highlighted the initiative’s role in positioning the country as a leader in semiconductor design and manufacturing.
About OSAT facility
The CG Semi facility at Sanand, Gujarat, is one of India’s first full-scale OSAT plants. It provides end-to-end solutions for chip assembly, packaging, testing and post-test services, covering both traditional and advanced packaging technologies.
Backed by central and state government support, CG Semi is investing over Rs 76 billion ($870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat.
The G1 facility, inaugurated on August 28, 2025, will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features high-yield equipment, a cutting-edge manufacturing execution system (MES) for level 1 automation and traceability, and in-house labs for reliability and failure analysis. It is currently undergoing International Organization for Standardization (ISO) 9001 and International Automotive Task Force (IATF) 16949 certification. Customer qualification runs across various packages will begin following the inauguration. CG Semi is on track to commence commercial production in calendar year 2026.
Further, located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.
Speaking at the inauguration, chairman, CG Power, said, “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the government and industry can come together with conviction, capital, and scale to achieve the vision set by our prime minister (PM). Every chip we make here is a step toward India’s technological sovereignty.”
Furthermore, to build and operate the OSAT, CG Semi has brought together a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also made significant strides in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training, ensuring a faster learning curve and readiness for high-volume operations.
