Gujarat's new chip plant to supply auto industry, export to US, Europe

Chips from the new CG Semi OSAT facility in Sanand, Gujarat, will be used in autos and industrial applications and exported to Japan, the US, and Europe. The plant marks a major step in India's goal to build a semiconductor ecosystem.

Chips for Global Export

Chips manufactured at the newly inaugurated CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, will be used in automobiles and industrial applications, while a significant portion will also be exported to Japan, the United States and Europe, Union Electronics and Information Technology Minister Ashwini Vaishnaw said on Saturday.

Speaking at the inauguration of the facility, Vaishnaw said the plant marks an important step in India's efforts to build a globally competitive semiconductor industry and position the country as an exporter of advanced chip technologies. "The chips manufactured at this plant will be used in cars, scooters, and various industrial applications; and--most significantly--chips made in India, at this facility, will be exported to Japan, America, and Europe. Indian technology will earn global acclaim," the minister said.

He said the development reflects India's emergence as a credible player in the global semiconductor value chain, with domestically manufactured chips finding applications both in the domestic market and overseas. Vaishnaw credited the achievement to the Centre's push to establish a semiconductor manufacturing ecosystem in the country. "The efforts of Prime Minister have made this success possible. This was once considered impossible, but it has become a reality thanks to the bold resolve of our leadership--a monumental commitment to establish a semiconductor industry in India, which has now come to fruition," he said.

About the Sanand Facility

The Sanand facility will package and test semiconductor chips before they are deployed across sectors such as automotive and industrial electronics, while also catering to export markets, further integrating India into the global semiconductor ecosystem.

Project Details and Investment

Prime Minister Narendra Modi inaugurated the commercial production of semiconductor chips at CG Semi's OSAT facility in Gujarat's Sanand today. The project was approved by the Union Cabinet in February 2024 under India's Semiconductor Mission. CG Semi Pvt Ltd, a subsidiary of CG Power and Industrial Solutions Limited, has established the OSAT facility in Sanand with an investment of Rs 7,600 crore. CG Semi has entered into a joint venture with Japan's Renesas Electronics and Thailand's Stars Microelectronics.

The commencement of this project will further strengthen Sanand's semiconductor ecosystem. According to Prime Minister Narendra Modi, the rapid growth of India's semiconductor sector will make this decade the biggest turning point in the country's technological future. (ANI)

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