India made a significant step in its semiconductor endeavor with the launch of Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facility located at Sanand, Gujarat. The plant is a part of the India Semiconductor Mission (ISM) as it enhances the drive of the country to become self-reliant in chip production as a part of the vision of Atmanirbhar Bharat.
Significance
OSAT Pilot Line is the first end to end chip assembly, packaging and testing plant in India . It employs advanced and conventional packaging technologies to package chips that are customer eligible to the path of large scale commercial production. This progress underscores the increased capacity of India in the strategic semiconductor market.
Investment and Capacity
CG Semi, a joint venture of CG Power (Murugappa Group), Renesas Electronics and Stars Microelectronics are developing the facility. CG Semi is constructing two factories; G1 and G2 with the investment of 7,600 crore (USD 870 million).
- G1 will be open in 2025 with a capacity of 0.5 million units/day.
- G2, which is to be commissioned by 2026 will be capped at 14.5 million units/day.
The plants will produce 5,000 jobs together.
Features and Quality
G1 facility has high-yield equipment, Level 1 automation of Manufacturing Execution System (MES), and in-house laboratories to conduct reliability check and failure analysis. It is seeking ISO 9001 and IATF 16949 accreditation so that it can serve both the local and international markets.
Skill Development and Collaboration
The project has combined over 1,000 years of industry experience and was trained abroad to work in large volumes, the Indian engineers. Global talent shortage is also being dealt with by the government who has partnered with 270 universities and has opened training on chip designing. The result of this effort is already 20 chips of 17 institutions made at Semi-Conductor Laboratory, Mohali.
Strategic Importance
The OSAT Pilot Line is important in Atmanirbhar Bharat of India. It lowers the import dependency, benefits industries including the automotive industry, defence, IoT, and infrastructure and enhances the Indian status as an emerging global semiconductor center.
Month: Current Affairs - August 31, 2025
Category: current affairs daily