India has entered a "new era in semiconductors" with the commencement of commercial production at CG SEMI's OSAT facility in Sanand, Gujarat, Union Minister for Electronics and IT Ashwini Vaishnaw announced on Saturday. The plant is the country's third semiconductor unit to begin commercial production in 2026.
Rapid Construction and Investment
Vaishnaw praised the Gujarat government's cooperation, noting the facility went from groundbreaking on 13 March 2024 to production in just 27 months. The project involves an investment of over Rs 7,600 crore and was established in partnership with Japan's Renesas Electronics. He thanked Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel, and Deputy Chief Minister Harsh Sanghavi for their support.
Expanding Semiconductor Ecosystem
The Minister highlighted that Prime Minister Modi launched the first and second semiconductor plants on 28 February and 31 March 2026, respectively. Of the 12 semiconductor projects approved by the Centre, three are now in commercial production, with two more set to be inaugurated in the coming months. "By the end of 2026, five semiconductor plants are expected to be operational across the country. This momentum will give new boost to the Atmanirbhar Bharat mission," Vaishnaw said.
Global Supply Chain Integration
Chips produced at the Sanand facility will be used in automobiles, scooters, and industrial equipment in India, and will also be exported to Japan, the United States, and Europe. This positions India as a contributor to the global semiconductor supply chain.
Social Impact and Workforce Development
Vaishnaw described the plant as "not just a technical achievement but also a symbol of social change." Young women from states including Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala, and Gujarat are employed as operators after specialized training in Malaysia. He added that as India's ecosystem matures, such world-class training can increasingly be delivered domestically.
Broader Progress in Semiconductor and Electronics
The Minister noted that 12 semiconductor units are under construction, 24 deep-tech chip design startups have emerged, over 70,000 youth have been trained in chip design, and 315 universities now offer related courses. India's first semiconductor fab in Dholera is also progressing rapidly. Additionally, India's electronics manufacturing sector has grown to nearly Rs 13 lakh crore, supporting over 25 lakh jobs.
Official Launch Ceremony
Prime Minister Narendra Modi toured the facility's Experience Centre and Clean Room and unveiled the plaque marking the start of commercial production. The first product was handed over to Renesas Electronics India. The government stated that the milestone reinforces India's emergence as a trusted and self-reliant destination for semiconductor manufacturing and a rising global technology power.
