India's CG Semi starts chip production in Gujarat

Prime Minister Modi has inaugurated commercial chip production at CG Semi's $870m OSAT (outsourced semiconductor assembly and test) plant in Sanand, Gujarat. The facility, a joint venture between CG Power, Japan's Renesas, and Thailand's Stars Microelectronics, will initially package 200 million chips per year, scaling to 500 million and potentially 4.7 billion at full capacity. It is the third packaging plant to come online under India's Semiconductor Mission, following Micron and Kaynes Semicon. Chips will target automotive, industrial, and 5G markets, with exports to Japan, the US, and Europe. Six semiconductor projects worth $14.7bn have been approved in Gujarat, positioning Sanand as India's first chip packaging cluster. India's strategy is to master packaging before moving to full fabrication.

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