India’s CG Semi Starts Production With 200 Million Chips

India’s CG Power & Industrial Solutions Ltd.’s new semiconductor unit has started production with an annual capacity of 200 million chips, Prime Minister Narendra Modi said Saturday, marking a fresh milestone in the country’s goal to build a domestic chip industry and gain a foothold in the global supply chain.

The plant, operated by CG Semi Pvt. Ltd., aims to eventually scale up output to 5 billion chips a year, Modi said, while inaugurating the Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat, his home state.

It marks the third semiconductor venture to start commercial production in India this year, with two more set to begin operations in 2026.

The facility is dispatching its first commercial shipment to global customers of Japan’s Renesas Electronics Corp., a joint venture partner in the project. Thailand’s Stars Microelectronics is the other partner. Also speaking at the event, Electronics and Information Technology Minister Ashwini Vaishnaw said chips produced at the factory will be exported to Japan, the US and Europe.

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