India opens CG Semi chip-packaging plant in Gujarat

India has inaugurated its third major semiconductor manufacturing facility, marking a significant step in its strategy to build a domestic chip industry. Prime Minister Narendra Modi formally launched commercial production at the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat, on July 4, 2026.

The facility, representing an investment of approximately 7,600 crore rupees (about $870 million), is a joint venture between India’s CG Power and Industrial Solutions, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics. It will focus on the packaging, assembly, and testing of semiconductor chips, a critical final stage in the supply chain before chips are integrated into electronic devices.

The plant has an initial annual production capacity of 200 million chips, with plans to scale up to 500 million and eventually reach a peak annual capacity of roughly 4.7 billion units over the next five years. A second facility at the site is under construction. The chips produced will serve the automotive, consumer electronics, industrial equipment, telecommunications, and 5G sectors, with a portion destined for export to markets including Japan,...