OSAT Facility in Gujarat

Union IT Minister Shri Ashwini Vaishnaw and Gujarat Chief Minister Shri Bhupendra Patel recently inaugurated one of India’s first full-scale OSAT facilities in Gujarat at Sanand. Developed by CG Semi, this OSAT pilot line in Gujarat marks a significant milestone in India’s semiconductor roadmap. It aligns with the broader vision of Atmanirbhar Bharat and the pursuit of technological sovereignty, positioning India as a crucial player in the global semiconductor industry.

With a rapidly growing global demand for chips and an anticipated shortage of one million semiconductor professionals by 2032, India is not only emerging as a production hub but also as a center for skilled talent in the sector.

This development is a key highlight under the India Semiconductor Mission OSAT facility, aimed at strengthening India’s semiconductor ecosystem development in Gujarat.

What is an OSAT Facility?

The term OSAT stands for Outsourced Semiconductor Assembly and Test.

• These facilities play a critical role in the downstream segment of the chip supply chain, including chip assembly, packaging, testing, and post-test services.

• The newly inaugurated OSAT facility in Gujarat will support faster qualification of chips and pave the way for full-scale commercial manufacturing by 2026.

• This OSAT plant in Sanand, Gujarat, can process both traditional and advanced chip packages, which is crucial for making India competitive in the global semiconductor market.

By establishing such facilities, India aims to strengthen its semiconductor manufacturing facility India and position the country as a global leader in chip manufacturing.

Gujarat: India’s Emerging Silicon State

Gujarat is becoming a pivotal node in India’s semiconductor revolution. With proactive policies, state-of-the-art infrastructure, and leadership support, the state has emerged as a Gujarat semiconductor hub. CG Semi’s investment of over ₹7,600 crore (USD 870 million) will fund two advanced plants, G1 and G2, over the next five years.

• The G1 facility, inaugurated in 2025, will operate at 0.5 million units per day.

• The G2 plant, currently under construction, is expected to expand capacity to 14.5 million units daily by 2026.

Together, these high-tech OSAT manufacturing units in India will generate more than 5,000 direct and indirect jobs, boosting local employment and contributing to skill development in high-tech sectors.

India Semiconductor Mission: Building a Self-Reliant Ecosystem

The India Semiconductor Mission OSAT facility is part of the government’s larger initiative to develop a self-reliant semiconductor ecosystem. So far, ten semiconductor projects have been approved under this mission, emphasizing India’s commitment to creating a robust semiconductor assembly line in Gujarat.

This initiative also focuses on nurturing talent. Over 270 universities have been provided with state-of-the-art semiconductor design tools, which saw over 1.2 crore usages in 2025 alone.

Consequently, 20 student-designed chips from 17 academic institutions have already been fabricated at the Semiconductor Laboratory (SCL), Mohali. This ensures India becomes a leading hub for semiconductor professionals, addressing the expected global shortage of one million experts by 2032.

Strategic Industry Collaborations

CG Semi is a joint venture between CG Power and Industrial Solutions (Murugappa Group), Renesas Electronics (Japan), and Stars Microelectronics (Thailand). This collaboration brings in global expertise and enables technology transfer for rapid scaling of operations.

To ensure operational excellence, Indian engineers and technicians have undergone hands-on training in Malaysia, preparing them for high-volume operations in chip assembly in India. The OSAT facility in Gujarat features high-yield equipment, Manufacturing Execution Systems (MES) for automation and traceability, and labs for failure analysis and reliability testing. It is now undergoing ISO 9001 and IATF 16949 certification processes, with customer qualification runs set to begin soon.

Why This OSAT Facility Matters for SSC Aspirants

For SSC aspirants, this development is crucial for current affairs preparation. The inauguration of the OSAT facility in Gujarat touches multiple areas of relevance:

• Government Initiatives: India Semiconductor Mission and Atmanirbhar Bharat

• Economic Development: Large-scale investments, job creation, and infrastructure development in Gujarat

• Science & Technology: Semiconductor manufacturing, OSAT, and high-tech skill development

• International Collaboration: Partnerships with Japan and Thailand

Being familiar with this information helps in the General Awareness section and provides insights for questions in Science & Technology, Economy, and Indian Polity.

Key Highlights to Remember

• Location: Sanand, Gujarat

• Focus: Chip assembly, testing, packaging

• Investment: ₹7,600 crore (USD 870 million)

• Capacity: G1 – 0.5 million units/day; G2 – 14.5 million units/day

• Employment: 5,000+ direct and indirect jobs

• Collaborations: CG Power (India), Renesas Electronics (Japan), Stars Microelectronics (Thailand)

• Part of: India Semiconductor Mission

Other important keywords integrated: OSAT Gujarat, OSAT India, Semiconductor Gujarat, OSAT project India, Semiconductor assembly line Gujarat, Advanced semiconductor packaging facility Gujarat, Full-scale OSAT pilot line Sanand Gujarat, Outsourced semiconductor assembly and testing plant Gujarat.

Final Thoughts

The OSAT facility in Gujarat represents a major milestone in India’s semiconductor journey, positioning the country as a key player in the global chip manufacturing ecosystem. By enabling advanced chip assembly, packaging, and testing, this facility strengthens India’s technological sovereignty and aligns perfectly with the vision of Atmanirbhar Bharat.

With state-of-the-art infrastructure and high-yield equipment, the OSAT pilot line in Gujarat ensures faster chip qualification and prepares India for full-scale commercial manufacturing by 2026. The collaboration with global leaders like Renesas Electronics and Stars Microelectronics brings in valuable technology transfer and expertise, helping India scale rapidly in this strategic sector.

The development also highlights Gujarat’s emergence as a semiconductor hub, backed by proactive policies, significant investment, and a growing skilled workforce.