Chipfirms are ready for pilot roll; First-made India chip coming from CG Power

Sanand: India’s semiconductor ambitions move from paper to reality, with CG semi- ‘s subsidiary of Murugappa group-setting out the first-made India disc by the end of the year. CG Semi, together with Micron, Tata Electronics and Kaynes, is ready to start the prototypes of the pilot production lines from the pilot production lines, with commercial launch starting next year. ‘All the first four units approved will complete their lineage within this year. FAB will take time, “Minister of Minister Ashwini Vaishnaw said in a media interaction on Thursday. The announcement came at the launch of the CG Semi’s pilot who was outsourced for semiconductor meeting and test (OSAT) in Sanand, Gujarat. While full-scale manufacturing facilities are still in development, pilot lines or small-scale production setups used to test the groups are close to the completion. The first slide to come from CG Semi’s factory is important, as the company’s project was approved for 50% capital support from the government in February 2024. Micron, who received approval for a $ 2.75 billion project in June 2023, would lead the launch. Vaishnaw has addressed delays: ‘The micron plant is very large. They have a large lead line in their unit, which will soon be put into use. ‘ Among the £ 76,000 Crore India Semiconductor Mission (ISM), 10 semiconductor projects have so far been approved with a total investment of £ 1.6 billion, according to the government’s data. Four projects – Micron, CG Semi, Tata Electronics Chip Assembly plant in Assam and Kaynes OSAT plant – are set up with an £ 66,000 investment. Micron, Kaynes and Tata Electronics could not be reached for comment immediately. Pilot Line Push “Our OSAT facility in Sanand is almost there with Proto (prototype) products for AOS (Alpha and Omiconductors Ltd) and is on track to fully operate for commercial production by December 2025,” Ramesh Kannan, MD Kaynes Technology India, said during the Q1FY26. Kaynes is expected to start sharing commercially in the fourth quarter of the current financial year. The management of the company said during the call that it has so far been on board three clients for the chip Assembly business. Furthermore, Tata Electronics is also setting up a disk manufacturing plant in Gujarat’s Dholera against an £ 91,000 investment. CG Semi is a subsidiary of CG Power and Industrial Solutions Ltd and part of the Murugappa group. In collaboration with Renesas and Stars Microelectronics, CG semi invested more than 7,600 crore to develop two modern chip facilities in Sanand, Gujarat. Under the semiconductor mission, the government provides 50% capital support to the businesses, with additional fiscal support from the state government. During the earnings call with analysts to discuss the April-Junie quarter, the management of CG Power and Industrial Solutions said that the contribution to the total investment would be around £ 1,700. So far, it has invested £ 400 crore and employed about 170 people. “Industries need to support each other and embrace domestic chips. As India’s demand increases, whether in consumer electronics, cars or devices, we need to start making chips and using chips made here in India,” said Velayan Subbiah, CG Power chairman. According to Subbiah, India first followed the same concept to use locally manufactured chips, in which their industries supported their ecosystem. The company’s mini plant, which was launched on Thursday, will have a capacity of 0.5 million chip units per day. It will start with commercial production by next year. Another facility of CG Power, which is under construction, is expected to be completed by the end of 2026, the company said. Once in effect, the facility will be to a capacity of approximately 14.5 million units per day. Together, the two facilities are generated more than 5,000 direct and indirect jobs in the coming years, CG Semi said. In a earnings call to discuss the April-June quarter, CG Semi said the larger main plant will begin in 2027.