India's Chip Ambition Soars: Third Semiconductor Plant Begins Production in Gujarat

India just hit a major milestone in its tech journey, with CG SEMI Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat, starting full commercial production on July 4, 2026. This isn't just another factory; it's the third such facility to become operational in India this year, marking a massive leap forward in the country's ambition to become a global semiconductor powerhouse. Union Minister Ashwini Vaishnaw announced this on July 5, emphasizing India's entry into a 'new era in semiconductors' with two more plants expected to open soon, bringing the total to five by year-end. This new plant, backed by a significant investment of over ₹7,600 crore and a partnership with Japan's Renesas Electronics, is crucial for India's goal of reducing dependence on imported chips and strengthening its domestic electronics manufacturing sector. It will produce semiconductor chips for vital industries like automobiles and industrial equipment, with plans to export globally to countries including Japan, the US, and Europe. More than just technical progress, the facility is also driving social change by employing and training young women from diverse Indian states, who even traveled to Malaysia for specialized training, showcasing India's commitment to building a skilled workforce. With 12 semiconductor projects already approved under the ambitious India Semiconductor Mission, the focus is now squarely on deepening this ecosystem. The first commercial shipment from the Sanand plant already left on June 19, 2026, for Renesas' global customers, signaling India's readiness to integrate into the world's semiconductor supply chain. By 2029, India aims to produce 70-75% of the chips needed domestically, with a long-term vision to be a top semiconductor nation by 2035, moving towards even more advanced chip technologies.