TL;DR
Modi inaugurated commercial production at CG Semi’s $870 million OSAT plant in Sanand, Gujarat, which will initially package 200 million chips a year and expand to 500 million. This is the third packaging plant to come online under the India Semiconductor Mission after Micron and Kaynes Semicon.
Prime Minister Narendra Modi inaugurated the commercial production at CG Semi’s chip assembly and test facility in Sanand, Gujarat. The facility will initially produce 200 million chips per year. According to ANIIt plans to increase it to 500 million.
The plant is an external semiconductor assembly and test, or OSAT, facility. This involves the packaging and testing end of the chip supply chain, rather than making the silicon from scratch.
CG Semi a joint venture Among Mumbai-listed CG Power and Industrial Solutions, Japan’s Renesas Electronics and Thailand’s Stars Microelectronics. CG Power owns 92.3% of the venture, investing INR 7,600 crore (about $870 million) over five years.
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New Delhi covers half of eligible capital expenditure Subsidy up to $404 million Under Indian Semiconductor Mission. The same program was filmed recently Intel and 3DGS for $3.3 billion glass-substrate plant In Odisha.
Chips packaged in Sanand will find a significant share in cars, scooters and industrial equipment It is exported to Japan, USA and Europe. According to local reports, the plant is expected to create around 5,000 direct and indirect jobs over the next five years.
The third plant went offline
CG Semi is not the first bottling plant to start operations in India. Micron’s Sanand facility started operating in February and Kaynes Semicon followed in March.
Six semiconductor projects worth a total of $14.7 billion have now been approved in Gujarat, including Tata Electronics and Suchi Semicon. Sanand is emerging as the country’s first chip packaging cluster.
At Full Landing, CG Semi said the site can process 15 million units per day, which is about 4.7 billion chips. It will produce legacy packages such as QFN and QFP along with advanced FC BGA and FC CSP formats for automotive, consumer, industrial and 5G customers.
First packaging, then fabs
The launch corresponds to a wider gravity attack. There is Modi has raised tens of billions in AI infrastructure commitments Amazon joined the US lead from Google and Reliance and from India Alliance of Pax Silica in chip supply chains.
Governments everywhere subsidize local chip capacity EU flagship fab in Dresden To Washington’s CHIPS Act, one the intensification of the global race for technological supremacy. India is poised to adopt packaging first and then manufacturing.
Speaking at the launch, Modi called semiconductor growth the next phase of “Make in India” and promised to build the entire electronics value chain. The next few years will answer the question of whether Sanand’s packaging lines can anchor this ambition.
