Union Minister for Electronics and Information Technology, Ashwini Vaishnaw today announced that semiconductor chips, manufactured domestically, would be rolled out soon from CG Semi's factory in Sanand, Gujarat. Vaishnaw made these remarks while inaugurating CG Semi's Outsourced Semiconductor Assembly and Test (OSAT) facility.

CG Sumi, a subsidiary of CG Power and Industrial Solutions Limited, which is a part of the Murugappa Group, during the inauguration said that CG Sumi's Sanand facility is India’s first full-service OSAT provider, and aims to offer solutions meant for both traditional as well as advanced packaging technologies.

"This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets," the company said in a statement today.

CG Sumi, which is backed by both the central as well as the state governments, is investing over ₹7,600 crore for five years in order to develop two facilities in Gujarat.

The first facility, known as G1, which was unveiled today, will operate at a capacity of 0.5 million units per day.

"It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis. It is currently undergoing ISO 9001 and IATF 16949 certification. Customer qualification runs across various packages will begin following the inauguration. CG Semi is on track to commence commercial production in calendar year 2026, as committed to ISM," the company said.

The second facility, known as G2, is under construction at the moment and will be completed by the end of 2026.

"Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years," the company added.

Also present at the inauguration was Vellayan Subbiah, Chairman, CG Power, who called the inauguration as a 'national milestone.'

“This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty," he said.

Earlier, Vaishnaw had pointed out that India's first domestically produced semiconductor chips would be available by 2025.