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India Ships First Chips to Asia
1 Jul
Summary
- CG Semi began chip shipments to Kuala Lumpur on June 19.
- India's semiconductor ecosystem is developing rapidly.
- The Sanand facility has a peak capacity of 0.5 million units daily.
Murugappa Group's CG Semi commenced its first commercial shipment of assembled chips from its Sanand facility to Kuala Lumpur on June 19, signifying a major step for India's burgeoning semiconductor industry. This achievement, realized within ten months of the pilot facility's inauguration in August of the previous year, underscores the nation's rapid progress in establishing a semiconductor manufacturing and assembly ecosystem from the ground up.
The outsourced semiconductor assembly and test (OSAT) facility in Sanand, a significant ₹7,600-crore investment by CG Power in partnership with Japan's Renesas Electronics and Thailand's Stars Microelectronics, is crucial to India's semiconductor mission. This investment is planned over five years to develop two facilities, G1 and G2.
The G1 facility is currently operational, achieving a peak daily capacity of approximately 0.5 million units. It is designed for end-to-end chip assembly, packaging, and testing services. The manufactured chips are intended for consumer, industrial, automotive, and power applications, contributing to diversified sectors.
CG Semi is one of twelve projects approved under the first phase of the India Semiconductor Mission in February 2024. Other companies, including Micron Technology and Kaynes Semicon, have also begun shipping chips from their assembly, testing, marking, and packaging (ATMP) facilities, reflecting a collective national push towards self-sufficiency and global competitiveness in semiconductor production.
