India's third major semiconductor assembly facility unveiled with Prime Minister Modi

Indian Prime Minister Narendra Modi on Tuesday participated in the inauguration ceremony of CG Semi's new outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. This marks the commencement of operations for India's third major chip packaging plant, signaling a significant step in the nation's ambition to bolster its semiconductor manufacturing capabilities.

CG Semi is a joint venture established by Indian company CG Power in partnership with Renesas and Stars Microelectronics. The Sanand project broke ground in 2024 and is slated to begin trial operations in August 2025. The facility currently boasts an annual capacity of 200 million units, with plans to scale up to 500 million units ultimately.

The establishment of this new facility is part of India's broader strategy to foster and develop its domestic semiconductor industry. The Indian government has committed substantial financial resources to the sector. According to media reports from late last month, the government's Department of Expenditure is planning a budget of 1.25 trillion rupees (approximately 88.9 billion yuan) for "India Semiconductor Mission (ISM) 2.0," a figure roughly two-thirds higher than that allocated for ISM 1.0.