First Indian Semiconductor Chip In The Offing: Ashwini Vaishnaw
Union Minister for Information and Technology Ashwini Vaishnaw on Thursday inaugurated the advanced Outsourced Semiconductor Assembly and Test (OSAT) facility of CG Semi Private Limited in Sanand, Gujarat.
Vaishnaw also announced that Prime Minister Narendra Modi will “soon” dedicate the country’s first chip produced at this facility.
“CG Power’s pilot line was inaugurated here today, and very soon, the chip produced from this pilot line will be dedicated to the nation by the Prime Minister,” Vaishnaw said.
CG Power and Industrial Solutions Ltd set up its semiconductor OSAT unit in Sanand in partnership with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., with a total investment of approximately Rs 7,600 crore.
Speaking at the inauguration event, Union Minister Vaishnaw said, “This is a major milestone in our country’s semiconductor journey.”
About the progress in other chip plants, he said, “I also visited the nearby Micron’s plant, and the construction is going on at a very good pace. The Kaynes plant and construction are going on at a very good pace. And few months ago I visited Dholera, there also the construction is going on with very good pace.”
“Overall, out of the 10 projects that we have approved in the semiconductor mission. Very happy to report to all that this is a dream getting fulfilled,” the Union Minister said.
Vaishnaw highlighted a key achievement of India’s Semiconductor Mission, emphasising its focus on developing talent to meet a looming global workforce shortage in the semiconductor sector.
Speaking about the initiative, Vaishnaw noted that while the mission’s goals may seem ambitious, they are rooted in a clear global need as experts estimate a shortfall of nearly one million semiconductor professionals by 2032.
To bridge this gap, India has partnered with approximately 270 universities, providing them with access to some of the world’s most advanced chip design tools used by leading companies. These tools cover nearly every critical aspect of chip design, he added.
Vaishnaw said that the impact is already visible, as in 2025 alone, students clocked approximately 1.2 million design hours using these tools. As a result, 17 institutions have successfully designed chips, which are now in the final stages of production.
The CG Power’s Project will benefit from 50 per cent fiscal support on a pari-passu basis for the eligible CAPEX from India Semiconductor Mission, reflecting the commitment of the Government of India to strengthen India’s position as a key player in the global semiconductor value chain.
In January, a Fiscal Support Agreement (FSA) was signed by India Semiconductor Mission, CG Power and Industrial Solutions Ltd. and CG Semi Pvt. Ltd, which highlights the government’s commitment.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in December 2021 with a total outlay of Rs 76,000 crore under the India Semiconductor Mission (ISM).
In June 2023, the government approved the first proposal for setting up the semiconductor unit in Sanand. In February 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam.
Construction of all four semiconductor units is progressing at a rapid pace, and a robust semiconductor ecosystem is emerging near the units. These four units will bring an investment of almost Rs 1.5 lakh crore. The cumulative capacity of these units will be about seven crore chips per day.
Earlier this month, the government approved four more semiconductor projects under the India Semiconductor Mission (ISM), two in Odisha and one each in Andhra Pradesh and Punjab.
These four approved proposals will set up semiconductor manufacturing facilities with a cumulative investment of around Rs 4,600 crore and are expected to generate a cumulative employment of 2034 skilled professionals, which would catalyse the electronic manufacturing ecosystem, resulting in the creation of many indirect jobs.
With these four plants, the total approved projects under the India Semiconductor Mission (ISM) reach 10, with cumulative investments of around Rs 1.60 lakh crore in 6 states. (ANI)
