Major push to India Semiconductor Mission
India Opens New OSAT Facility in Gujarat for Semiconductor Advancement: India has commissioned its first Outsourced Semiconductor Assembly and Test (OSAT) unit at Sanand in Gujarat. Built by CG Semi, the project is part of the broader India Semiconductor Mission (ISM), designed to reduce dependence on imports and establish local strength in chip manufacturing.
The facility is capable of assembling, packaging, and testing chips, creating a seamless path from design to production. With commercial-scale manufacturing targeted by 2026, it marks a defining step in India’s ambition to become a global semiconductor hub.
Static GK fact: The India Semiconductor Mission, launched in 2021, supports both fabrication and design units with a ₹76,000 crore package.
Gujarat as semiconductor hub
Gujarat has become the epicenter of India’s semiconductor growth. With strong policy support and industrial infrastructure, the state has secured major global investments in the chip sector.
CG Semi has pledged ₹7,600 crore to build two advanced facilities—G1 and G2. The G1 unit, inaugurated recently, can produce half a million chips daily. The second unit, scheduled for completion by 2026, will scale production to 14.5 million chips per day.
The combined projects are expected to generate more than 5,000 jobs, enhancing local employment and strengthening the high-tech talent ecosystem in the region.
Static GK Tip: Gujarat was the first Indian state to declare a dedicated semiconductor policy in 2022.
Building semiconductor talent base
To meet industry demand, the government has connected with 270 academic institutions, equipping them with modern design software. These tools were used more than 1.2 crore times in 2025 by students and researchers.
As part of this initiative, 20 chips designed by students from 17 universities have been successfully fabricated at the Semi-Conductor Laboratory (SCL), Mohali. With an estimated global shortfall of 1 million semiconductor experts by 2032, India aims to be the largest source of skilled professionals in this sector.
Static GK fact: The Semi-Conductor Laboratory (SCL) at Mohali, Punjab, has been central to India’s microelectronics development since 1983.
International partnerships driving growth
CG Semi is supported by a strong consortium including CG Power and Industrial Solutions (Murugappa Group), Renesas Electronics from Japan, and Stars Microelectronics of Thailand. This collaboration introduces advanced know-how, ensuring rapid scaling of India’s semiconductor ecosystem.
Indian engineers have received specialized training in Malaysia to prepare for large-scale chip assembly and testing operations. The plant is equipped with automation systems, reliability testing labs, and high-precision machinery. It is also working towards ISO 9001 and IATF 16949 certifications, which will enable international-level quality assurance.
With customer qualification runs to begin shortly, the Sanand facility positions India to enter the global supply chain of advanced chip packaging and testing in a competitive way.
Static GK Tip: Renesas Electronics, headquartered in Tokyo, Japan, is one of the world’s leading suppliers of microcontrollers and automotive semiconductors.
Static Usthadian Current Affairs Table
India Opens New OSAT Facility in Gujarat for Semiconductor Advancement:
| Topic | Detail |
| Location of OSAT facility | Sanand, Gujarat |
| Developer of OSAT | CG Semi |
| Associated mission | India Semiconductor Mission (ISM) |
| Total investment announced | ₹7,600 crore (USD 870 million) |
| G1 unit daily capacity | 0.5 million units |
| G2 unit daily capacity (2026) | 14.5 million units |
| Jobs expected | 5,000 (direct and indirect) |
| University collaboration | 270 universities |
| Student chips fabricated | 20 from 17 institutions |
| Global partners | Murugappa Group, Renesas (Japan), Stars Microelectronics (Thailand) |
