SF Prep Notes

PM Modi inaugurates CG Semi OSAT facility at Sanand, India's third semiconductor plant in commercial production

Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat on 4 July 2026, the third semiconductor plant in India to start commercial production this year.

Summary

Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat on 4 July 2026. Electronics and IT Minister Ashwini Vaishnaw said it is the country's third semiconductor plant to begin commercial production this year, after plants launched on 28 February and 31 March 2026, and that it moved from groundbreaking on 13 March 2024 to production in 27 months. Built with an investment of over Rs 7,600 crore in partnership with Renesas Electronics of Japan, it will make chips for automobiles, scooters and industrial equipment and export to Japan, the US and Europe. Of 12 approved semiconductor projects, five plants are expected to be operational by the end of 2026. The Semicon India programme, approved by the Cabinet on 15 December 2021 with an outlay of Rs 76,000 crore, set up the India Semiconductor Mission as its nodal agency.

Key facts

Inaugurated
4 July 2026, Sanand, Gujarat
Type
Outsourced Semiconductor Assembly and Test (OSAT)
Investment
Over Rs 7,600 crore; partner Renesas Electronics, Japan
Timeline
Groundbreaking 13 March 2024; production in 27 months
Rank
Third plant in commercial production in 2026 (after 28 Feb and 31 Mar)
Pipeline
12 projects approved; 5 plants expected by end-2026
Semicon India
Rs 76,000 crore, approved 15 Dec 2021; ISM nodal agency

Practice MCQs 4 questions

Q1

The CG Semi OSAT facility inaugurated by PM Modi on 4 July 2026 is located in which place?

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Correct answer: A — Sanand, Gujarat

PM Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat.

Q2 Advanced

The CG Semi OSAT facility at Sanand was built in partnership with which company?

Show answer

Correct answer: C — Renesas Electronics, Japan

The facility was built in partnership with Renesas Electronics, Japan, with an investment of over Rs 7,600 crore.

Q3 Advanced

The Semicon India programme, which set up the India Semiconductor Mission (ISM) as its nodal agency, was approved by the Union Cabinet in December 2021 with what outlay?

Show answer

Correct answer: D — Rs 76,000 crore

The Cabinet approved the programme on 15 December 2021 with an outlay of Rs 76,000 crore (over USD 10 billion) and set up ISM to drive it; Rs 2,30,000 crore was the total support for electronics manufacturing.

Q4 Advanced

Consider the following statements about the CG Semi facility at Sanand: 1. It is the third semiconductor plant in India to start commercial production in 2026. 2. It is India's first semiconductor fab. 3. It went from groundbreaking to commercial production in 27 months. Which of the statements given above are correct?

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Correct answer: B — 1 and 3 only

It is the third plant in commercial production this year and took 27 months from groundbreaking; it is an OSAT unit, while India's first fab is coming up in Dholera.

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