Modi inaugurates semiconductor facility in Gujarat, Pg1

Key Highlights:

• Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, on July 4, 2026.
• The facility is a joint venture involving CG Power and Industrial Solutions Limited, Renesas Electronics Corporation, and Stars Microelectronics.
• This project represents an investment of over ₹7,600 crore and has commenced commercial production.
• The plant is designed to initially produce 200 million chips annually, with a long-term target of 500 crore chips per year.
• The inauguration marks a significant milestone in India's efforts to establish itself as a global semiconductor manufacturing hub.

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Detailed Insights:

• The CG Semi facility in Sanand is one of India's first full-scale OSAT plants, with a second facility (G2) currently under development.
• This initiative is a crucial component of the India Semiconductor Mission (ISM), which aims to foster a robust domestic semiconductor and display ecosystem.
• The facility will produce both traditional and advanced semiconductor packages, catering to critical sectors such as automotive, Internet of Things (IoT), industrial, and 5G technologies.
• The project is expected to generate substantial employment opportunities and reduce India's dependence on imported semiconductor chips.
• Government support for such manufacturing units is provided through schemes like the Production Linked Incentive (PLI) Scheme for semiconductors, launched in 2021.
• The OSAT plant performs essential post-fabrication processes, including the assembly, packaging, testing, and inspection of semiconductor devices.

Scientific/Technical Concepts Involved:

• Semiconductor: A material with electrical conductivity between a conductor and an insulator, fundamental to modern electronic devices.
• Outsourced Semiconductor Assembly and Test (OSAT): Third-party companies that provide specialized services for the assembly, packaging, and testing of semiconductor chips after they have been fabricated.
• Wafer Fabrication: The process of manufacturing integrated circuits on semiconductor wafers, typically silicon, before they are cut into individual dies.
• Semiconductor Packaging: The process of enclosing a semiconductor die in a protective casing to prevent damage and corrosion, while also providing electrical connections for integration into electronic systems.