**India Set to Launch First ‘Made in India’ Semiconductor Chip**
India’s Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, announced that CG Semi, a joint venture primarily owned by CG Power and Industrial Solutions, is preparing to unveil the first ‘Made in India’ semiconductor chip. This announcement was made during the inauguration of CG Semi’s facility in Sanand, Gujarat, on August 28, 2025. The facility will serve as the base for the production of this in-house semiconductor chip, which is part of the company’s outsourced semiconductor assembly and testing (OSAT) pilot program.
Vaishnaw revealed that the facility is expected to manufacture 500,000 ‘Made in India’ chips daily. “This pilot line (G1 facility) will produce 0.5 million chips per day, and our first Made-in-India chip will come from here,” he stated. Production at the Gujarat plant is anticipated to commence shortly.
The minister highlighted the significance of the semiconductor pilot line, which will facilitate the qualification of chips for customer approval and prepare them for commercial production. Vellayan Subbaiah, chairman of CG Power, emphasized the collaborative effort between government and industry, stating, “Our facility represents more than a milestone for me, CG. It is a national milestone. Today, however, is just the beginning. To build on this launch, we require industries to support each other.”
CG Semi’s future plans include a larger facility (G2 facility) spanning 28 to 32 acres, with the capacity to produce nearly 14.5 million chips per day. Construction of this expanded plant is set to begin in 2026, with full-scale production expected to start in 2027. Other companies in the semiconductor sector, such as Micron, Kaynes Technology, and Tata, are also reportedly establishing their pilot lines.
Vaishnaw noted the rapid progress of Micron’s construction, with production anticipated to begin by December 2025 or January 2026. He also mentioned that Kaynes Technology plans to initiate its pilot line by the end of this year.
CG Semi is a joint venture primarily owned by Mumbai-based CG Power and Industrial Solutions, part of the Murugappa Group, along with stakeholders including Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics. Following the announcement, shares of CG Power rose by 4.6%, closing at ₹694.15.
**FAQ**
**What is CG Semi’s role in India’s semiconductor industry?**
CG Semi is a joint venture focused on producing the first ‘Made in India’ semiconductor chip, with plans for significant daily production capacity and future expansion.