PM Modi inaugurates CG SEMI plant in Sanand, Gujarat, marking another significant step in India’s effort to build a strong domestic semiconductor industry. The newly launched outsourced semiconductor assembly and test (OSAT) facility is expected to strengthen the country’s electronics manufacturing ecosystem while creating thousands of employment opportunities in the coming years.
The facility, developed with an investment of approximately ₹7,600 crore, has begun commercial operations and will manufacture semiconductor chips for customers in India as well as international markets. The project is seen as an important part of India’s long-term strategy to reduce dependence on imported chips and establish itself as a competitive player in the global semiconductor supply chain.
A landmark day for India's semiconductor journey. The CG SEMI OSAT facility in Sanand will strengthen the chip manufacturing ecosystem, boost technological self-reliance and enhance India's position in the global semiconductor value chain.
— Narendra Modi (@narendramodi) July 4, 2026
https://t.co/uZA59xO3bs
PM Modi Describes the Project as a Historic Achievement
Speaking at the inauguration ceremony, Prime Minister Narendra Modi described the launch of the CG SEMI facility as a historic moment for India’s semiconductor sector. He said the new plant would help expand the country’s chip manufacturing capabilities, encourage technological self-reliance, and strengthen India’s position in the global semiconductor value chain.
The Prime Minister noted that semiconductor manufacturing has become one of the world’s most strategic industries, powering everything from smartphones and automobiles to medical equipment, artificial intelligence, and advanced computing systems. According to him, developing a robust domestic semiconductor ecosystem is essential for India’s future economic growth and technological advancement.
India, Japan and Thailand Partnership Behind the Project
During his address, Modi highlighted that the Sanand facility represents successful collaboration between India, Japan and Thailand. He said the project reflects growing international confidence in India’s manufacturing sector and demonstrates how global partnerships can accelerate industrial development.
He also praised the speed at which the project was completed, noting that the facility progressed from an empty site to commercial production in just over two years. The rapid execution, he said, showcases India’s improving infrastructure and manufacturing capabilities.
Annual Production Target of Two Billion Chips
The newly inaugurated plant has set an initial target of producing 2 billion semiconductor chips every year. However, Prime Minister Modi encouraged the company to aim even higher.
He said the long-term vision should be to increase annual production to 5 billion chips, equivalent to manufacturing more than 15 million chips every day. Expressing confidence in the company’s capabilities, he said India must continue expanding its semiconductor manufacturing capacity to meet growing domestic demand and serve global markets.
The Prime Minister added that the government’s Semiconductor India Programme is progressing rapidly and is creating an environment that encourages investment, innovation and advanced manufacturing across the country.
Boost for Jobs and Gujarat’s High-Tech Manufacturing Sector
The CG SEMI facility has already generated employment for more than 300 workers during its initial phase of operations. Company estimates suggest that the project could create around 5,000 direct and indirect jobs over the next five years.
The expansion is expected to benefit not only skilled engineers and technicians but also businesses involved in logistics, equipment supply, maintenance, and other supporting industries. Officials believe the project will contribute to the growth of Gujarat’s high-tech manufacturing ecosystem while strengthening the local economy.
Strengthening India’s Semiconductor Mission
The launch of the Sanand OSAT facility comes as India continues investing heavily in semiconductor manufacturing under its national semiconductor mission. The government has been working to attract global investment, develop advanced manufacturing infrastructure, and reduce reliance on imported electronic components.
OSAT facilities play a critical role in the semiconductor industry by assembling, packaging and testing chips before they are delivered to electronics manufacturers. Expanding this capability within India is expected to improve supply chain resilience and support the country’s ambition of becoming a global electronics manufacturing hub.
With commercial production now underway, the CG SEMI plant represents another important milestone in India’s broader effort to build a competitive semiconductor ecosystem. As production scales up over the coming years, the facility is expected to contribute to technology development, employment generation and the country’s growing presence in the global semiconductor industry.