India’s semiconductor mission reached a major milestone as Prime Minister Narendra Modi inaugurated the third chip packaging facility at Sanand, underscoring the country’s rapid progress toward becoming a global semiconductor hub.

Prime Minister Narendra Modi on Sunday highlighted the role of young workers, particularly women from remote and tribal regions, in India’s growing semiconductor industry, a day after inaugurating the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand in Gujarat.

India’s semiconductor journey will take a significant turn by the year-end as five chip fabrication units are expected to be operational by the end of 2026, Union Electronics and Information Technology Minister Ashwini Vaishnaw said on Saturday, as CG Semi’s outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, commenced commercial production.

Ashok Chandak, President IESA, remarked: “The commencement of commercial production at CG Semi’s OSAT facility in Sanand, inaugurated by Prime Minister Narendra Modi, marks a defining milestone in India’s semiconductor journey. It demonstrates that the Semicon India Program has successfully progressed from policy announcements and project approvals to commercial manufacturing and exports—an important validation of India’s long-term vision.”

The Union Cabinet approved the project in February 2024 under the India Semiconductor Mission (ISM) 1.0. The plant will manufacture legacy chips such as QFN and QFP, as well as advanced FC-BGA and FC-CSP chips, catering to the needs of the automotive, electronics, industrial equipment, 5G communications and power applications sectors.