Union Minister for Information and Technology, Ashwini Vaishnaw, inaugurated the advanced Outsourced Semiconductor Assembly and Test (OSAT) facility of CG Semi Private Limited in Sanand, Gujarat on Thursday. Vaishnaw also said that Prime Minister Narendra Modi will "soon" dedicate the country's first chip made at this facility.
The pilot line of CG Power was officially started, and soon, the chips made from this line will be presented to the nation by the Prime Minister, said Vaishnaw. CG Power and Industrial Solutions Ltd created a semiconductor OSAT facility in Sanand together with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., with a total investment of about Rs 7,600 crore.
Speaking at the inauguration event, Union Minister Vaishnaw said, "This is a big step forward in our country's journey to develop semiconductors." He also talked about progress in other chip plants, saying, "I also visited the nearby Micron's plant, and the construction is moving along very quickly."
The Kaynes plant and construction work are progressing very quickly. A few months ago, I visited Dholera, and there the construction work is happening at a very good pace. Overall, out of the 10 projects that we have approved under the semiconductor mission.
The Union Minister said, "I'm really happy to share that this dream is finally coming true." Vaishnaw pointed out a major success of India's Semiconductor Mission, stressing how it is working to build skilled talent to address a growing shortage of workers in the semiconductor industry worldwide. Vaishnaw said that even though the mission's goals might seem big, they are based on a real problem around the world.
Experts think there will be almost a million fewer semiconductor workers by 2032. To close this gap, India has worked with around 270 universities, giving them access to some of the most advanced chip design tools that top companies use worldwide. He also mentioned that these tools cover almost every important part of chip design.
Vaishnaw mentioned that the effects are already noticeable, as in 2025 alone, students spent about 1.2 million hours designing with these tools. So far, 17 institutions have created chips that are now ready for the last steps of manufacturing. The CG Power's Project will get 50 pc financial support for eligible capital expenses from the India Semiconductor Mission, on the same basis as others.
This shows the Government of India's commitment to making India a major player in the global semiconductor industry. In January, the India Semiconductor Mission, along with CG Power and Industrial Solutions Ltd, signed a Fiscal Support Agreement, which highlights the government's commitment.
The Programme for Developing the Semiconductors and Display Manufacturing Ecosystem in India was announced in December 2021, with a total budget of Rs 76,000 crore as part of the India Semiconductor Mission (ISM). In June 2023, the government gave the green light to the first plan for establishing a semiconductor unit in Sanand.
In February 2024, three additional semiconductor facilities were given the go-ahead. Tata Electronics is building a semiconductor manufacturing plant in Dholera, Gujarat, and another semiconductor unit in Morigaon, Assam. All four semiconductor units are being built quickly, and a strong network of related technology companies is starting to grow around them.
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These four units will require an investment of nearly Rs 1.5 lakh crore. The total number of chips these units can produce each day will be around seven crore. Earlier this month, the government gave approval for four additional semiconductor projects as part of the India Semiconductor Mission (ISM), with two projects located in Odisha and one each in Andhra Pradesh and Punjab.
These four approved plans will establish semiconductor manufacturing plants with a total investment of about Rs 4,600 crore. They are expected to create 2034 skilled job opportunities, which will boost the electronic manufacturing sector and lead to the creation of many additional jobs.
With these four plants, the total number of approved projects under the India Semiconductor Mission (ISM) has reached 10, and the total investment across six states is about Rs 1.60 lakh crore.
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