Historic Launch of India’s First End-to-End OSAT Pilot Line Facility in Gujarat

Union Minister of Electronics and Information Technology Shri Ashwini Vaishnaw and Gujarat Chief Minister Shri Bhupendra Patel jointly inaugurated one of India’s first comprehensive Outsourced Semiconductor Assembly and Test (OSAT) pilot line facilities on August 27, 2025, at Sanand, Gujarat. This landmark event marks a transformative milestone in India’s semiconductor manufacturing ecosystem, reinforcing the nation’s ambition to achieve self-reliance in critical electronic components.

Pioneering Semiconductor Qualification and Commercialization

The new facility will serve as a qualification hub where chips fabricated elsewhere will undergo rigorous testing, validation, and customer approval processes. This approach establishes a robust pathway for scaling up to full-fledged commercial manufacturing plants. By ensuring that designs meet stringent quality and performance benchmarks before mass production, the pilot line accelerates time-to-market for new semiconductor products.

Investment, Capacity, and Infrastructure

CG Semi, the joint venture spearheading this initiative, has committed an investment exceeding ₹7,600 crore over the next five years to develop two advanced facilities, G1 and G2, within the Sanand campus. The G1 facility, now operational, boasts a peak capacity of approximately 0.5 million units per day. It features end-to-end capabilities for chip assembly, packaging, and post-test services, supported by a Manufacturing Execution System (MES) for Level-1 automation and traceability. In-house reliability and failure-analysis laboratories further enhance quality assurance.

Construction of the G2 facility, situated roughly three kilometers from G1, is slated for completion by the end of 2026. Upon commissioning, G2 will expand capacity to about 14.5 million units per day. Together, these units are projected to generate over 5,000 direct and indirect employment opportunities in Gujarat and beyond.

Public–Private Partnerships

The CG Semi venture unites expertise from CG Power and Industrial Solutions Ltd. (Murugappa Group), global semiconductor leader Renesas Electronics Corporation, and Thailand-based OSAT specialist Stars Microelectronics. This collaboration leverages decades of international experience and specialized skills. Chairman of CG Power Mr. Vellayan Subbiah noted that the project exemplifies how government policy support, industry conviction, and financial capital can converge to realize Prime Minister Narendra Modi’s vision of technological sovereignty.

Addressing the Semiconductor Talent Gap

With the global semiconductor industry projected to face a shortfall of one million professionals by 2032, India has positioned itself to bridge this deficit. The government has already partnered with 270 academic institutions, equipping them with cutting-edge design tools and enabling over 12 million tool usages in 2025 alone. To date, 20 custom chips designed by 17 of these institutions have successfully been fabricated at the Semi-Conductor Laboratory in Mohali, showcasing India’s emerging prowess in chip design.

Broad Packaging Technology Portfolio

The OSAT pilot line supports a diverse array of packaging technologies, including SOIC, QFP, QFN, BGA, FCQFN, and FCBGA, catering to automotive, defense, telecommunications, infrastructure, and Internet-of-Things (IoT) applications. Pursuit of ISO 9001 and IATF 16949 certifications underscores the facility’s commitment to adhering to international quality standards. Customer-qualification runs across all package types will begin immediately, leading to the commencement of commercial production in 2026.

Implications for India’s Economy and Technology Landscape

This initiative represents a critical stride toward Atmanirbhar Bharat in high-technology sectors. By nurturing indigenous semiconductor assembly and testing capabilities, India can reduce dependence on external suppliers and strengthen supply-chain resilience. The facility enhances India’s attractiveness as a global semiconductor destination, promoting further investment in research, development, and manufacturing.

The Sanand pilot line exemplifies how India’s policy framework, skilled workforce, and strategic collaborations can collectively drive innovation in semiconductors. It lays the groundwork for future large-scale fabs, bolstering national security, economic growth, and technological leadership in an era where semiconductors underpin virtually every modern industry.