PM Modi Inaugurates CG Semi OSAT Facility in Sanand, Strengthening India's Semiconductor Ecosystem

Honorable Prime Minister Narendra Modi has inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This facility is expected to strengthen the India’s semiconductor manufacturing ecosystem by enhancing the the chip packaging and testing capabilities. It is developed under the Semicon India Programme, this project represents another important step towards building a complete semiconductor value chain from chip design and fabrication to assembly, packaging, and testing and it showcases India’s to become self reliant in every part of technology.

PM Modi Inaugurated OSAT Facility in Sanand

Prime Minister Narendra Modi inaugurated the OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat, called it as “an important milestone” as India develops its rapidly growing semiconductor sector.

In his speech at the opening ceremony, the Prime Minister stated that India is establishing a competitive semiconductor industry globally with consistent investment, international partnerships and supported government policies.

The commercial launch of the new facility signals the start of large-scale semiconductor assembly and testing operations, providing further support to India’s position in the global electronics supply chain.

What Does OSAT Stand For?

An OSAT (Outsourced Semiconductor Assembly and Test) facility refers to a single type of specialty manufacturing process; it handles the last stages of semiconductor wafer production.

OSAT facilities perform many key functions, including the,

Packaging semiconductor chips
Assembly of semiconductor chips
Electrical testing of semiconductor chips
Assurance of quality from semiconductors chips
Testing the reliability of semiconductor chips
Verifying that semiconductors chips meet packaging specification requirements.

These functions create reliable semiconductor chips to be incorporated into products such as smartphones, automobiles, industrial equipment, and consumer electronic devices.

Key Highlights of the CG Semi OSAT Facility

The Sanand facility is one of the largest semiconductor manufacturing facilities in the India.

Major Features

It is located at Sanand, Gujarat
Commercial facility for assembly and testing semiconductors
Inaugurated on 4th July 2026
It is developed under the Semicon India Programme
Collaboration between Indian, Japanese and Thai partners
Approximate initial capacity of 20 crore semiconductor units annually
Planned future expansion to 500 crore units annually

Progress from laying foundation stone to commercial production occurred between 2024 and 2026 and shows that India has made great progress with respect to its ability to execute projects in high-tech manufacturing.

Part of Semicon India Programme

The inauguration event demonstrates the progress of the Semicon India Programme which was initiated to make India a global semiconductor manufacturing hub.

This programme aims to develop an integrated ecosystem that provides all aspects necessary for production of chips, including,