PM Modi inaugurates CG Semi OSAT semiconductor facility in Gujarat: All you need to know

"Today's event is proof that whatever India resolves to do, it firmly accomplishes," Modi said while inaugurating the facility.

The Prime Minister recalled that about five years ago, the government had set out to transform India into a global centre for advanced technology through the twin pillars of 'Design in India' and 'Make in India'.

"We successfully moved forward with the foundational mantra of Design in India and Make in India," he said.

Highlighting the rapid pace of execution, Modi noted that the project's foundation stone was laid in 2024, with chip testing beginning by August 2025 before commercial operations commenced.

"This remarkable journey from foundation stone to production is definitely the result of the immense hard work of many colleagues," he said.

The Prime Minister also interacted with engineers and employees at the facility during his visit, praising the confidence and enthusiasm of the young workforce.

"Every young colleague I interacted with today is completely full of self-confidence," Modi said.

Describing the project as a symbol of global technological collaboration, Modi highlighted the partnership between Indian, Japanese and Thai companies behind the semiconductor facility.

"This integrated partnership is going to give entirely new momentum to India's semiconductor journey," he said.

He also lauded the facility's rapid scale-up, noting that it is expected to produce 20 crore semiconductor units annually in its current phase, while expressing confidence that production would eventually reach 500 crore units per year.

"I congratulate the entire team, the state government, and the whole country for building this step by step, brick by brick, and chip by chip," the Prime Minister said.

Highlights of the CG Semi OSAT facility

The G1 facility, inaugurated in August 2025, has a peak capacity of up to 300 million units per year. Since inauguration, the facility has progressed through equipment installation, process stabilization, workforce training, customer qualification, and quality readiness. With commercial production now underway, CG Semi is positioned to serve customers across the globe.

Backed by central and state government support, and in collaboration between CG Power, Renesas Electronics Corporation and Stars Microelectronics, CG Semi is investing over ₹7,600 crore over five years to develop two OSAT facilities – G1 and G2.

While G1 has now commenced commercial production, the second facility, G2, is under development and will significantly scale CG Semi’s production capacity once operational.

Key highlights of the project include:

Approved under the India Semiconductor Mission on March 8, 2024.

Technology partnerships with Renesas Electronics and Stars Microelectronics for advanced semiconductor packaging and testing.

Capability to manufacture advanced and legacy semiconductor packages, including SOIC, QFP, QFN, BGA, FCQFN and FCBGA.

Pilot facility inaugurated in August 2025, with commercial production beginning in 2026.

Two manufacturing units (G1 and G2) catering to the automotive, consumer electronics, industrial and 5G sectors.

Initial production capacity of 20 crore units annually, with plans to expand significantly in the coming years.