PM Modi Launches CG Semi Plant in Sanand, Sets Ambitious 20 Crore Chips Annual Target

SANAND : Marking a major leap in India’s semiconductor ambitions, Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, declaring that India is now firmly stepping into the global chip manufacturing race with confidence and scale.

Calling it a transformative moment for the country’s technology ecosystem, PM Modi announced that the facility will initially produce 20 crore chips annually, with a long-term target of scaling up to 500 crore chips per year, or nearly 1.5 crore chips per day.

“This CG Semiconductor plant is a strong effort to connect India with global partners like Japan and Thailand. It will accelerate India’s semiconductor journey. Commercial production starts today,” PM Modi said during the inauguration.

The ₹7,600 crore project, developed by CG Semi Pvt. Ltd., a subsidiary of CG Power and Industrial Solutions Limited, has been set up under the India Semiconductor Mission (ISM) after Cabinet approval in February 2024. It is among the first four semiconductor projects approved under the national mission.

The facility has been developed in collaboration with Japan’s Renesas Electronics and Thailand’s Star Microelectronics, strengthening India’s integration into the global semiconductor supply chain. Officials said the Sanand cluster is rapidly emerging as a key hub for advanced electronics manufacturing.

PM Modi highlighted that this is the third semiconductor-related plant inaugurated in just four months, calling it proof of India’s fast-paced industrial transformation.

Reflecting on his long-standing vision, the Prime Minister said, “My dream of setting up a semiconductor ecosystem in Gujarat nearly two decades ago has now become a reality. At that time, no one in India even discussed chips seriously.”

He added that India’s progress in electronics manufacturing has been remarkable. “Mobile phone production has grown significantly, and India is now the second-largest manufacturer globally. Electronics production has increased sevenfold,” he said.

Describing the Sanand facility as a “mini India,” PM Modi praised the confidence of young engineers working on the project, saying their enthusiasm reflects India’s rising technological capability.

PM Modi reviews Gujarat Cabinet performance

Prime Minister Narendra Modi concluded his one-day Gujarat visit on Saturday with a key review meeting with the state Cabinet at Ahmedabad airport before departing for Delhi. All state ministers were directed to remain present at the 7 pm meeting, where they will present detailed reports on their respective departments’ performance, ongoing schemes and development work.Sources indicate that the Prime Minister assessed the progress of key government initiatives and provided strategic guidance for future governance priorities. The high-level interaction is expected to focus on improving administrative efficiency and accelerating implementation of welfare and infrastructure projects across Gujarat.