New Delhi — Prime Minister Narendra Modi officially opened the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, on Saturday, marking a government‑backed effort to expand India’s semiconductor manufacturing ecosystem.
The ceremony was attended by senior officials from the Ministry of Electronics and Information Technology, state representatives, and executives from CG Semi, the Taiwanese‑based firm that will operate the plant. Modi highlighted the strategic importance of domestic chip assembly and testing capabilities for reducing India’s reliance on foreign supply chains and supporting the “Make in India” agenda.
According to the announcement, the Sanand OSAT unit will provide back‑end semiconductor services, including wafer dicing, packaging, and final testing for a range of integrated circuits used in consumer electronics, automotive, and industrial applications. The facility is expected to create several hundred jobs and is positioned to serve both domestic manufacturers and export markets.
The project is part of a broader push by the Indian government to attract foreign investment in the semiconductor sector. Earlier this year, the Ministry of Electronics and Information Technology announced incentives such as capital subsidies, tax breaks, and a dedicated semiconductor policy aimed at fostering a self‑reliant electronics supply chain.
Industry analysts have noted that while the OSAT model—outsourcing assembly and test services to specialist firms—can accelerate capacity building, its success will depend on securing a steady flow of wafer shipments from front‑end fabs and ensuring robust logistics for high‑value components.
Analysis: The inauguration underscores the Modi administration’s focus on building a full‑stack semiconductor value chain within India, a sector traditionally dominated by East Asian manufacturers. By facilitating OSAT operations, the government aims to lower barriers for domestic chip designers and system integrators, potentially enhancing the competitiveness of Indian electronics firms. However, the facility’s impact will hinge on broader ecosystem development, including the establishment of front‑end wafer fabrication plants and the resolution of supply‑chain constraints that have affected global chip production.
Sources
– Google News India, “PM inaugurates the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat” (https://news.google.com/rss/articles/CBMi8wFBVV95cUxPT3ZDOFZGUVdJRDAyTmdhdUs0Rllfa2lMbTE0WnAwNzZZWVdCTklZZmhXdk56NFRjSVlzOEtkNFA4VWgtSUxwUlNtRzd1TlJZcHBLTDlPQnVwZ2R2SUJSTDRlTmlSWGRxaE40b3AzMnJxcG5GeHRTc1dUUVVoT1pUOHQzWVRabXcyUUZjUVc2LWRITnpkb3BBVFp4TlV3MWNKZ1hSTl9IeFJCSVQ2a3JTelZ6SXNuNW9WT3hJQjg5ZnFDZFBCY3lLN29IR09WdXp5dnEtOENNNW1UTWF4YmZVazB5TXpVMGlQS3RRY0pZbmxmLWs)
Story synopsis gathered from: Google News India — source
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