- CG Semi Pilot Line in Gujarat begins operations
- First Made-in-India chip expected within months
- Full-scale production planned by 2027
Pilot line launched in Gujarat
Union Minister for Electronics and IT, Ashwini Vaishnaw, announced that India’s first domestically manufactured semiconductor chip will soon be rolled out from the CG Semi Pilot Line in Sanand, Gujarat. The G1 pilot facility, inaugurated alongside Gujarat Chief Minister Bhupendrabhai Patel, marks a significant step in India’s semiconductor journey.
The pilot line will allow customers to test chips before placing bulk orders, enabling early adoption and industry readiness.
Production capacity and investment
At peak output, the pilot line will handle around 500,000 units per day, covering assembly, packaging, testing, and post-test services. Backed by both central and state governments, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over ₹7,600 crore (USD 870 million) over five years to establish two facilities, G1 and G2, with a combined production capacity of 15 million units annually.
The G2 facility, located three kilometres from G1, is under construction and expected to be completed by late 2026. Once operational, G2 will ramp capacity up to 14.5 million units per day.
Timeline for commercial production
According to CG Power Chairman Vellayan Subbiah, qualification processes for the pilot facility, including product testing and inspection, will begin in September. Commercial chip production is projected to start within six to eight months, with full-scale operations targeted for 2027.
Together, the two plants are expected to create over 5,000 direct and indirect jobs. CG Semi also announced plans to welcome Indian semiconductor professionals abroad who wish to return and contribute to the domestic industry.
Industry and ecosystem impact
The move aligns with India’s Semiconductor Mission, which aims to build a self-reliant chip manufacturing ecosystem. The presence of ecosystem partners, including gas and material suppliers, around Gujarat’s semiconductor hubs is seen as a positive sign for supply chain readiness.
Separately, US-based Micron is expected to launch its pilot chip facility in India by December or January, adding further momentum to the sector.
Why this matters for businesses
For industries reliant on IT hardware, a domestic chip supply could reduce dependence on imports, improve availability, and stabilise pricing in the long term. With large-scale operations planned by 2027, businesses can expect stronger supply chain resilience and potential opportunities to collaborate within India’s growing semiconductor ecosystem.
