Blitz India Business
A ₹7,600 crore (about $870 million) semiconductor assembly-and-test plant in Sanand, Gujarat — CG Semi’s OSAT facility, inaugurated on July 4 — has begun commercial production, making India’s third chip unit to start commercial output this year.
The venture brings together CG Power with Japan’s Renesas and Thailand’s Stars Microelectronics. Its first pilot line is already running at roughly half a million units a day, with the plant targeting a peak of about 4.7 billion units a year over five years; a second block is slated to come online by the end of 2026.
Packaging is where India’s chip story turns bankable — real units, real customers, and a credible ramp from millions to billions.
By the Numbers
- Investment: ~₹7,600 cr ($870m)
- Pilot line: ~0.5 million units/day now
- Peak target: ~4.7 billion units/yr over five years
- Partners: CG Power · Renesas (Japan) · Stars Micro (Thailand)
The end-markets are broad — automotive, industrial, consumer electronics, telecom, 5G, IoT and power — and Sanand is fast becoming India’s first chip-packaging cluster. Each completed unit lowers the risk for the next investor and thickens the local supplier base, the flywheel effect that policymakers have been chasing.
The honest challenge is depth: turning packaging capacity into design talent, materials suppliers and, eventually, front-end fabrication takes patient capital and years of execution. The constructive read is that the base of the value chain is now being laid in India — and every unit tested and shipped from Sanand is a step from dependence toward capability.