India just entered the semiconductor manufacturing chat. Prime Minister Narendra Modi is inaugurating CG Semi’s OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat, on July 4, 2026, marking the start of commercial production at one of the country’s first major chip packaging plants.
The facility represents a ₹7,600 crore investment, roughly $870 million, backed by a joint venture between CG Power and Industrial Solutions, Japan’s Renesas Electronics America, and Thailand’s Stars Microelectronics. It’s being built under the India Semiconductor Mission, the government’s ambitious plan to stop being entirely dependent on foreign chips.
What’s actually being built here
OSAT covers assembly, testing, and packaging — critical steps in the semiconductor supply chain, but not the same as fabricating chips from scratch.
CG Semi’s G1 pilot plant is already operational with a daily production capacity of approximately 0.5 million units. The facility is targeting a peak annual capacity of 4.7 billion units over the next five years. A second facility, dubbed G2, is expected to come online by the end of 2026, which would significantly expand output.
