The Sanand facility marks India’s third operational OSAT plant and is expected to strengthen domestic chip packaging while supporting exports and job creation.
Prime Minister Narendra Modi has inaugurated commercial chip production at CG Semi’s outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, marking the commissioning of India’s third such plant after Micron Technology and Kaynes Semicon, according to The Economic Times.
The facility developed by CG Semi, a joint venture between CG Power and Industrial Solutions, Renesas Electronics, and Stars Microelectronics has begun operations at its G1 plant, which has an annual production capacity of 300 million units. A second facility, G2, is under development and is expected to significantly expand production.
Supported by central and state government support, the company is investing more than $890 million over five years to develop the two facilities. The plant currently employs over 300 people and is expected to create more than 5,000 direct and indirect jobs during the period.
Speaking at the inauguration, Modi said, “A semiconductor cluster is being born in India,” adding that the company has set a target of producing 5 billion chips annually. Union Electronics and IT Minister Ashwini Vaishnaw said chips manufactured at the facility will serve automotive and industrial applications and will also be exported to Japan, the United States and Europe.
The plant will manufacture legacy QFN and QFP chips along with advanced FC-BGA and FC-CSP packages for automotive, industrial equipment, electronics, 5G communications and power applications, according to The Economic Times.
