Prime Minister Narendra Modi said on July 4 that CG Power & Industrial Solutions had started production at its semiconductor facility in Sanand, Gujarat.

The factory’s first shipments will go to customers of Renesas Electronics, with chips exported to Japan, the US, and Europe.

CG Semi operates the facility through a joint venture with Renesas and Thailand-based Stars Microelectronics.

The plant provides outsourced semiconductor assembly and test (OSAT) services for the automotive, industrial, consumer, Internet of Things (IoT), and 5G sectors.

Modi said the facility started with capacity to produce 200 million chips a year and aims to scale up to 5 billion chips annually.

Project documents said output will gradually increase to 15 million chips a day, in line with installed capacity of up to 4.7 billion chips a year over five years.

The 76 billion rupees (US$798 million) project is backed by 50% fiscal support on eligible capital expenditure under the India Semiconductor Mission, with additional support from Gujarat.

Modi said the plant is India’s third semiconductor venture to start commercial production this year.

Industry tracking indicated Micron’s Sanand assembly, test, marking, and packaging facility and Kaynes Semicon’s Sanand outsourced semiconductor assembly and test unit began operations earlier in 2026.

🔗 Source: Bloomberg