India’s semiconductor sector reached another milestone on Friday as Prime Minister Narendra Modi inaugurated commercial production at CG Semi’s plant in Sanand, Gujarat. The facility, the country’s third semiconductor plant to begin commercial operations this year, also shipped its first batch of chips to Japan.
CG Semi has officially started commercial production at its Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, giving another boost to India’s growing semiconductor industry. Prime Minister Narendra Modi inaugurated the plant on Friday, making it the third semiconductor facility in the country to begin commercial operations this year.
The inauguration also marked the plant’s first export, with a batch of chips being shipped to Japan. Calling it a significant moment, CG Power Executive Vice Chairman Vellayan Subbiah said India’s semiconductor journey has moved from ground-breaking to shipping.
CG Semi is a joint venture between CG Power, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics. Its G1 facility is currently producing around one million chips a day and has a peak annual capacity of 300 million units.
The company is also building a second plant, which will add another 15 million chips a day. Once both facilities are operational, their combined production capacity will reach 16 million chips per day.
Subbiah said the company has qualified its chips with a couple of customers and has started shipping them from India to markets around the world. He added that the company aims to achieve Grade 1 automotive qualification within the next 18 to 24 months. Together, the two facilities are expected to create between 8,000 and 10,000 jobs, including indirect employment.
The G1 facility was first inaugurated in August 2025. Since then, the company has completed equipment installation, process stabilisation, and customer qualification before entering commercial production. The project involves an investment of more than Rs 7,600 crore over five years.
Speaking at the event, Union Minister Ashwini Vaishnaw said India is expected to have five semiconductor plants operational by the end of 2026. He said that three of the 12 semiconductor projects approved by the Centre are now in commercial production, while two more are set to be inaugurated in the coming months. India’s first and second semiconductor plants were inaugurated on February 28 and March 31, 2026, respectively.
During the programme, Prime Minister Modi also virtually laid the foundation stone for India Chip Private Limited, an OSAT facility being set up by the HCL-Foxconn joint venture at the Yamuna Expressway Industrial Development Authority in Greater Noida, Uttar Pradesh. The project, backed by an investment of Rs 3,700 crore, is expected to produce 36 million chips and process 20,000 wafers per month once it becomes operational.
Addressing the gathering, Modi said India is building an integrated electronics manufacturing ecosystem covering finished products, components, and semiconductors. He added that chips made in India are expected to support emerging technologies such as artificial intelligence and robotics.
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