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India Launches OSAT Facility
Context:
Union Minister Shri Ashwini Vaishnaw inaugurated one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facility at Sanand, Gujarat, marking a key milestone under the India Semiconductor Mission (ISM).
India’s Semiconductor Mission and OSAT Significance
- The India Semiconductor Mission (ISM) aims to develop a complete semiconductor ecosystem including chip design, manufacturing, and testing.
- OSAT facilities perform chip assembly, packaging, and testing after fabrication, making them crucial for supply chain independence.
- The CG Semi OSAT Facility in Gujarat is among India’s first full-scale units, with investments of over ?7,600 crore and phased development of two plants (G1 and G2).
Strategic and Economic Importance
- The G1 unit, inaugurated in 2025, will reach a capacity of 5 million units per day with commercial production beginning in 2026.
- The upcoming G2 facility (completion by 2026) is projected to scale up to 5 million units per day.
- Collectively, both facilities will generate over 5,000 direct and indirect jobs, strengthening Atmanirbhar Bharat in high-tech sectors.
- This initiative reduces dependence on global semiconductor supply chains (largely dominated by Taiwan, South Korea, and the US).
Talent Development and Global Context
- By 2032, the world will face a shortage of 1 million semiconductor professionals; India is positioning itself to bridge this gap.
- The Government has partnered with 270 universities, giving access to advanced semiconductor design tools with 2 crore usages recorded in 2025.
- Already, 20 student-designed chips from 17 institutions have been fabricated at the Semi-Conductor Laboratory (SCL), Mohali.
- India thus aims to become a global hub for semiconductor talent and manufacturing.
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