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India Inaugurates First OSAT Pilot Line, Paving Way for Semiconductor Sovereignty

CG Power’s Sanand facility marks a turning point in India’s chip manufacturing ambitions under the India Semiconductor Mission.

Yajati Rout by Yajati Rout
August 28, 2025
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In a landmark move for India’s tech ecosystem, Union Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel inaugurated one of the country’s first end-to-end OSAT (Outsourced Semiconductor Assembly and Test) pilot line facilities at CG Power’s campus in Sanand.


This initiative, part of the India Semiconductor Mission, is poised to accelerate India’s journey toward semiconductor self-reliance.

The facility will enable customer qualification of chips, a critical step before full-scale commercial production. With ₹7,600 crore earmarked for two facilities—G1 and G2—CG Semi aims to produce up to 15 million units per day by 2026, creating over 5,000 jobs.

India is also investing in talent development to address the projected global shortfall of one million semiconductor professionals by 2032. Over 270 universities have been equipped with advanced design tools, resulting in 20 student-designed chips already fabricated at SCL Mohali.

CG Semi, a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, is training Indian engineers abroad and building a robust ecosystem for chip packaging and testing. The facility will serve sectors ranging from automotive and defence to IoT and infrastructure.

Minister Vaishnaw hailed the launch as a “national milestone,” reinforcing India’s commitment to technological sovereignty and global competitiveness.


 

Tags: Ashwini VaishnawAtmanirbhar BharatCG Powerchip manufacturingGujarat Tech HubIndia Semiconductor MissionOSAT FacilityRenesas ElectronicsSCL MohaliSemiconductor Talent
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Yajati Rout

Yajati Rout

Yajati K. Rout is a dynamic journalist at Pragativadi, known for delivering nuanced and impactful storytelling that spans Odisha’s societal fabric to global sports arenas. His reporting navigates seamlessly between grassroots realities, high-profile political developments, and the pulse of international tennis and cricket. With a flair for SEO-driven storytelling and a deep cultural lens, Yajati crafts content that resonates with a diverse readership—bridging insight with accessibility.

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