Semiconductor OSAT Pilot Line Facility
India has taken a major stride in semiconductor manufacturing with the inauguration of one of the country’s first end-to-end Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facility. Located in Sanand, Gujarat, this facility marks milestone in India’s ambition to become self-reliant in semiconductor design and production. The launch is part of the India Semiconductor Mission (ISM) and aims to boost the nation’s semiconductor ecosystem under the leadership of Prime Minister Narendra Modi.
Significance
- The OSAT Pilot Line at Sanand is a full-scale plant dedicated to chip assembly, packaging, testing, and post-test services.
- It uses advanced and traditional packaging technologies to prepare chips for customer qualification.
- This step is crucial as approved chips enable commercial plants to start full-scale production.
- The facility is a key element in India’s semiconductor journey, showcasing the country’s growing capabilities in this strategic sector.
Investment and Capacity Details
CG Semi, the company behind the facility, is investing over ₹7,600 crore (approximately USD 870 million) to develop two state-of-the-art facilities (G1 and G2) in Gujarat. The G1 facility, inaugurated in 2025, can handle up to 0.5 million units per day. The G2 facility, under construction nearby, will boost capacity to about 14.5 million units daily by the end of 2026. Together, these plants are expected to generate over 5,000 jobs, both direct and indirect.
Collaborations and Industry Support
CG Semi is a joint venture involving CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics. The company has assembled a team with over 1,000 years of combined semiconductor experience. Indian engineers and technicians have received hands-on training abroad to accelerate readiness for high-volume operations. The Government of Gujarat and the central government provide strong support, making Gujarat a key semiconductor hub.
Features
The G1 plant is equipped with high-yield equipment and a Manufacturing Execution System (MES) supporting Level 1 automation and traceability. It also has in-house laboratories for reliability testing and failure analysis. The facility is in the process of obtaining ISO 9001 and IATF 16949 certifications, ensuring international quality standards. These features position the facility to serve both domestic and global semiconductor markets.
Skill Development and Talent Pipeline
A critical focus of the India Semiconductor Mission is building a skilled workforce. By 2032, a global shortage of one million semiconductor professionals is expected. India aims to fill portion of this gap. The government has partnered with 270 universities and provided advanced semiconductor design tools. Recently, these tools were used over 12 million times, resulting in 20 chips designed by 17 institutions and fabricated at the Semi-Conductor Laboratory in Mohali. This initiative empowers youth and strengthens India’s semiconductor talent base.
Strategic Importance for India
The launch of the OSAT Pilot Line aligns with India’s Atmanirbhar Bharat vision. It reduces dependence on imports and enhances technological sovereignty. The facility will serve critical sectors such as automotive, defence, infrastructure, and the Internet of Things (IoT). The project exemplifies effective government-industry collaboration and signals India’s emergence as a global semiconductor player.
| Related | |
|---|---|
