India is set to witness a milestone in its semiconductor journey, with the country’s first commercial chip to be assembled at CG Semi’s outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat. IT Minister Ashwini Vaishnaw announced on Thursday that the pilot line will begin rolling out chips later this year.
“This pilot line will produce 500,000 chips per day, and our first made-in-India chip will come from here,” Vaishnaw said at a press conference in Gujarat , after the inauguration of the OSAT facility.
The facility, approved by the Union Cabinet in February 2024, is being developed with a total investment of ₹7,600 crore. It is a joint venture between CG Power and Industrial Solutions, Renesas Electronics America, and Thailand-based Stars Microelectronics. The equity split includes CG Power investing up to $205 million, Renesas $15 million, and Stars $2 million, representing stakes of 92.34%, 6.76%, and 0.9% respectively.
Once fully operational, the plant will assemble chips for consumer, industrial, automotive, and power applications, with a peak capacity of 15 million chips per day.
While Micron Technologies was the first to secure Cabinet approval for financial incentives under the India Semiconductor Mission in June 2023, CG Semi’s facility has moved faster to achieve first chip production in the country. Micron’s larger-scale pilot line is still under construction and is expected to begin production by December 2025.
OSAT facilities play a crucial role in the semiconductor ecosystem, providing third-party packaging and testing services, ensuring silicon devices are packaged and tested before entering the market.
(This content is sourced from a syndicated feed. The Japan India Manufacturing Journal website assumes no responsibility or liability for its accuracy, completeness, or content.)
COMMENTS