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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 said on Saturday.
The plant became the country's third semiconductor unit to begin commercial production in 2026. Addressing the event, Vaishnaw said a robust semiconductor manufacturing ecosystem is taking shape under the Prime Minister's vision, and will serve as the foundation for a developed India. He thanked PM Narendra Modi, Gujarat CM Bhupendra Patel and Deputy CM Harsh Sanghavi, crediting the Gujarat government's cooperation for taking the facility 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 set up in partnership with Japan's Renesas Electronics. The Minister noted that the PM had launched the first and second semiconductor plants on February 28 and March 31, 2026. 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," he said. Chips made 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, positioning India as a contributor to the global supply chain. Vaishnaw described the plant as "not just a technical achievement but also a symbol of social change." Young women from Jharkhand, Chhattisgarh, Madhya Pradesh, Bihar, Jammu & Kashmir, Kerala and Gujarat are employed as operators after specialised training in Malaysia. He added that as India's ecosystem matures, such world-class training can increasingly be delivered domestically. Highlighting broader progress, the Minister said 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. He added that India's electronics manufacturing sector has grown to nearly Rs 13 lakh crore, supporting over 25 lakh jobs. PM 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 said the milestone reinforces India's emergence as a trusted and self-reliant destination for semiconductor manufacturing and a rising global technology power. (ANI)
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