Modi Inaugurates CG Semi Plant, Highlights India's Semiconductor Push

Prime Minister Narendra Modi on Saturday inaugurated CG Semi's outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, describing it as another step in India's efforts to build a robust domestic semiconductor ecosystem.

OSAT facilities assemble, package and test semiconductor chips before they are supplied for use in electronic devices.

The facility has started commercial production and currently has the capacity to package around 20 crore semiconductor chips per annum. It is expected to gradually expand its capacity to 500 crore chips a year, according to the Prime Minister.

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Addressing the inauguration ceremony, Modi said India is steadily moving towards becoming a global semiconductor manufacturing destination under the Semicon India programme. "Step by step, brick by brick, chip by chip, India is moving towards becoming a global semiconductor powerhouse," he said.

The Prime Minister said the country's electronics manufacturing sector has expanded significantly over the past decade, creating the foundation for India's semiconductor ambitions. 

He said mobile phone production has increased 33-fold since 2014, while electronics has grown nearly seven times and exports have risen eleven-fold during the period. "Today, India is not just manufacturing electronic products; it is also becoming a major producer of electronic components and semiconductors,' Modi said.

Modi added that the government's focus is on developing a complete semiconductor value chain that includes chip design, fabrication and packaging. 

He also said that Sanand is emerging as a semiconductor hub, with investments such as Micron and Kaynes expected to support the growth of ancillary industries and create employment opportunities

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Highlighting the sector's long-term potential, the Prime Minister said semiconductors and artificial intelligence will open up opportunities in research, design, manufacturing and supply chain management. He also acknowledged women from tribal communities working at the facility after receiving specialised international training, calling them an example of India's growing technological capabilities.

The inauguration comes as India continues to push for greater self-reliance in semiconductor manufacturing and attract global investments into the strategically important sector.