Semiconductor manufacturer CG Semi is preparing to produce its first India-assembled chip from a pilot facility located in Gujarat, Union Minister Ashwini Vaishnaw announced on Thursday. The G1 pilot facility, inaugurated by Minister Vaishnaw and Gujarat Chief Minister Bhupendrabhai Patel, marks the first such semiconductor pilot line to become operational among the recent chip manufacturing projects initiated in the state.
“This is a key step in India’s semiconductor manufacturing journey,” Mr Vaishnaw said. He explained that the pilot line will allow customers to test chips before placing large-scale production orders. “We expect to see the first ‘Made in India’ chip from this plant in the near future,” he added.
The G1 pilot unit has been designed to manage end-to-end semiconductor processes, including assembly, packaging, functional testing, and post-test operations. It is capable of producing up to 500,000 units per day at full capacity. The company, CG Semi, is backed by both central and state governments and has partnered with Renesas and Stars Microelectronics for technical collaboration. It plans to invest over ₹7,600 crore (approximately USD 870 million) over five years to develop two production units—G1 and G2—with a combined output capacity of 15 million chips. Full-scale operations are expected by 2027.
The second facility, G2, is located approximately three kilometers from G1 and is currently under construction. It is expected to be completed by the end of 2026 and will have the capacity to produce 14.5 million units per day once operational. The two facilities together are projected to generate more than 5,000 direct and indirect employment opportunities.
CG Power Chairman Vellayan Subbiah stated that qualification processes, including testing of products and manufacturing lines, will begin in September 2025. Commercial production is targeted to commence within six to eight months after that. He urged domestic companies to support India’s semiconductor ecosystem and echoed calls for collaboration across industries to promote self-reliance. He also welcomed Indian semiconductor professionals abroad to return and contribute to the country’s chip-making efforts.
Mr Subbiah confirmed that CG Semi remains on schedule to begin commercial production in 2026, in line with its commitments under the India Semiconductor Mission. Meanwhile, Minister Vaishnaw shared that Micron’s chip plant, also located in Gujarat, is expected to launch its pilot facility by December 2025 or January 2026. In addition, supporting industries—including gas suppliers—are establishing facilities near the new chip plants to build a local supply ecosystem.
CG Semi, a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, offers comprehensive semiconductor assembly and testing solutions for a range of applications, including automotive, defense, infrastructure, and IoT. The company operates from its headquarters in Sanand, Gujarat.
