"India has entered new semiconductors era": Ashwini Vaishnaw as CG semi OSAT plant starts commercial production in Sanand
New Delhi, July 5
India has entered a "new era in semiconductors" with the commencement of commercial production at CG SEMI's OSAT facility in Sanand, Gujarat, Union Minister for Electronics and IT Ashwini Vaishnaw said on Saturday.
The plant became the country's third semiconductor unit to begin commercial production in 2026.
Addressing the event, Vaishnaw said a robust semiconductor manufacturing ecosystem is taking shape under the Prime Minister's vision, and will serve as the foundation for a developed India.
He thanked PM Narendra Modi, Gujarat CM Bhupendra Patel and Deputy CM Harsh Sanghavi, crediting the Gujarat government's cooperation for taking the facility from groundbreaking on 13 March 2024 to production in just 27 months. The project involves an investment of over Rs 7,600 crore and was set up in partnership with Japan's Renesas Electronics.
The Minister noted that the PM had launched the first and second semiconductor plants on February 28 and March 31, 2026. Of the 12 semiconductor projects approved by the Centre, 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. This momentum will give new boost to the Atmanirbhar Bharat mission," he said.
Chips made at the Sanand facility will be used in automobiles, scooters and industrial equipment in India, and will also be exported to Japan, the United States and Europe, positioning India as a contributor to the global supply chain.
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 employed as operators after specialised training in Malaysia. He added that as India's ecosystem matures, such world-class training can increasingly be delivered domestically.
Highlighting broader progress, the Minister said 12 semiconductor units are under construction, 24 deep-tech chip design startups have emerged, over 70,000 youth have been trained in chip design, and 315 universities now offer related courses. India's first semiconductor fab in Dholera is also progressing rapidly.
He added that India's electronics manufacturing sector has grown to nearly Rs 13 lakh crore, supporting over 25 lakh jobs.
PM Narendra Modi toured the facility's Experience Centre and Clean Room and unveiled the plaque marking the start of commercial production. The first product was handed over to Renesas Electronics India.
The government said the milestone reinforces India's emergence as a trusted and self-reliant destination for semiconductor manufacturing and a rising global technology power.
— ANI
Reader Comments
Great step forward, but I hope this isn't just another government PR exercise. We need to ensure that these jobs go to local talent and that the supply chain is truly indigenous. The mention of women from tribal areas being trained in Malaysia is interesting — let's hope we can build that training capacity here soon. Also, the chip design startups and university courses are promising, but the real test will be in quality and global competitiveness.
As someone who worked in the semiconductor industry in the US for years, this is genuinely impressive. Setting up an OSAT facility with Renesas is a smart move — it's a less capital-intensive entry point than a full fab, but it builds critical skills and supply chain linkages. The 27-month timeline from groundbreaking to production is world-class by any standard. India is finally serious about being part of the global electronics ecosystem.
Waah! This is the kind of news that gives me hope for India's future. From mobile repair shops to semiconductor plants — what a journey! 🚀 The fact that chips from Sanand will go to Japan, US, and Europe is a big deal. It means we're not just making for ourselves but becoming a trusted partner globally. Kudos to the Minister, Gujarat government, and all the engineers and workers who made this happen.
Incredible progress! I've been tracking India's electronics manufacturing push for a while, and this is a genuine milestone. The 12 approved semiconductor units, 70,000 trained youth, and 315 universities offering chip design courses — these are solid fundamentals. The only concern is whether we can sustain the momentum and build the complete ecosystem including design, fabrication, and packaging. But this is a very promising start.
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