India is officially stepping into the semiconductor era with the announcement that the country’s first Made-in-India chip will be produced at CG Semi’s new OSAT (Outsourced Semiconductor Assembly and Testing) pilot facility in Sanand, Gujarat. The news was confirmed by Union Electronics & IT Minister Ashwini Vaishnaw at the inauguration ceremony on August 28.
“This pilot line (G1 facility) will produce 0.5 million chips per day, and our first Made-in-India chip will come from here,” Vaishnaw said. The chips will initially serve sectors like automotive, consumer electronics, microcontrollers, and industrial applications.
The G1 pilot line is a key step toward commercial readiness, allowing chips to be tested and qualified before full-scale production. CG Semi is a joint venture between CG Power, Renesas Electronics of Japan, and Stars Microelectronics of Thailand. The pilot facility is just the beginning, the full-scale plant (G2) will cover 28–32 acres, and is expected to produce 14.5 million chips per day once operational in 2027.
Engineering firm Jacobs, known globally for designing semiconductor fabs, has been appointed as the turnkey contractor for the G2 facility. Construction is scheduled to begin in 2026.
Vaishnaw also visited other key chipmaking projects, including Micron’s ATMP (Assembly, Testing, Marking, and Packaging) facility, which is set to start production in December 2025 or January 2026. In addition, Kaynes Technology in Sanand and Tata’s semiconductor unit in Assam are also developing pilot lines to support India’s semiconductor roadmap.
Speaking at the launch, Vellayan Subbaiah, Chairman of CG Power, called the facility a national milestone. “This is more than a milestone for CG. It shows how government and industry can come together at scale,” he said. “Now we must move from making chips to using chips made in India.”
With multiple pilot lines coming online, India’s semiconductor ecosystem is beginning to take shape, one that could soon power everything from smartphones and cars to satellites and smart cities.
