India’s First Semiconductor Chip to Roll Out: A Milestone for India Semiconductors
Why in the News?
India’s first “Made in India” semiconductor chip is set to roll out from CG Semi’s Sanand plant in Gujarat, as announced by IT Minister Ashwini Vaishnaw. This milestone marks a major step under the India Semiconductor Mission (ISM) towards Atmanirbhar Bharat in electronics manufacturing, signaling a new era for Semiconductor India and the domestic chip industry.
About the Launch of India’s First Chip – Sanand Facility:
- Location: Sanand, Gujarat – emerging as India’s semiconductor hub and a key center for domestic semiconductor manufacturing.
- Company: CG Semi (92.3% stake), a leading semiconductor company in India, with collaboration from Renesas Electronics (6.8%) and Stars Microelectronics (0.9%), forming a crucial part of the Indian semiconductor ecosystem.
- Investment: ₹7,600 crore under ISM support, boosting the semiconductor industry in India and advancing the Semicon India initiative.
- Pilot OSAT Facility (G1):
- Investment: ₹600 crore.
- Workforce: 100–200 people.
- Capacity: 5 lakh semiconductor chips per day, contributing to India’s semiconductor manufacturing capacity.
- Commercial Plant (G2):
- To be inaugurated in 2026.
- Installed capacity: 15 million semiconductor chips per day (4.7 billion annually), significantly enhancing India’s position in the global semiconductor value chain.
- Employment: Around 1,000 people.
- Chip Type: Packaged semiconductor chips, assembled and tested in India (not yet fab-made), representing a crucial step in the semiconductor manufacturing process and advancing India’s capabilities in semiconductor packaging.
Significance and Future Outlook:
- Strategic Importance: Reduces import dependence on countries like Taiwan & China, strengthening India’s position in the semiconductor industry and promoting domestic chip production.
- Sectors Benefited: Consumer electronics, automobiles, EVs, telecom, defense, all of which rely heavily on semiconductor chips and memory chips.
- Pilot Line Role: Helps in customer validation and testing before full-scale production, a critical step in semiconductor chip manufacturing and fabrication of chips.
- Other Plants in Pipeline:
- Micron and Kaynes semiconductor units in Sanand (ready by 2025–26), further expanding India’s semiconductor manufacturing capacity and establishing more fabs in India.
- Out of 10 ISM-approved units, 4 are in Gujarat, 2 in Odisha, and 1 each in Punjab, Assam, Andhra Pradesh, and Uttar Pradesh, showcasing the spread of the semiconductor ecosystem across India.
- Government Push: Aligns with Atmanirbhar Bharat and Digital India initiatives, fostering growth in the domestic semiconductor industry and promoting semiconductor chip design.
- Global Relevance: Strengthens India’s position amid the global semiconductor supply chain crisis, potentially making India one of the top semiconductor manufacturing countries and a key player in the global chip supply.
About India Semiconductor Mission (ISM):
| Key Points |
| – Launch: December 2021 by the Union Government. |
| – Objective: To develop a sustainable semiconductor and display ecosystem in India, boosting the domestic semiconductor industry and promoting semiconductor technology. |
| – Budget Outlay: ₹76,000 crore over 5 years. |
| – Key Components: |
| – Support for semiconductor fabrication plants (fabs) and chip fabrication units. |
| – OSAT (Outsourced Semiconductor Assembly & Test) facilities and advanced chip packaging. |
| – Design-linked incentives for Indian startups in semiconductor chip design. |
| – Relevance for UPSC: Semiconductors are the “oil of the digital economy”, crucial for AI, 5G, IoT, EVs, and defense technology. |