India Inaugurates First Semiconductor OSAT Pilot Line Facility at Sanand Breakthrough

India has inaugurated its first end-to-end Semiconductor OSAT Pilot Line facility in Sanand, Gujarat, marking a significant milestone in the country’s semiconductor manufacturing journey. The facility, operated by CG Power, will produce chips for customer qualification, making it easier for commercial plants to produce qualified products. The India Semiconductor Mission aims to create a global pipeline of skilled (Manufacturing) professionals, with the government partnering with 270 universities to equip them with advanced semiconductor design tools. In 2025, these tools recorded over 1.2 crore usages, and 20 chips designed by 17 institutions were successfully fabricated at the Semi-Conductor Laboratory in Mohali.

Nation has marked a historic milestone in its technological journey with the inauguration of the nation’s first Semiconductor OSAT (Outsourced Semiconductor Assembly and Test) Pilot Line Facility at Sanand, Gujarat. This project is more than just an industrial achievement; it represents India’s leap toward becoming a strong player in the global semiconductor ecosystem. With global chip shortages highlighting the importance of semiconductor self-sufficiency, this facility ensures India takes significant strides towards reducing dependency on imports while strengthening domestic manufacturing. Positioned within the broader Semiconductor Mission, the Sanand OSAT pilot line lays the foundation for advanced innovation, job creation, and global collaboration in high-tech industries.

Why Sanand Was Selected as the Location

Sanand, located in Gujarat, has long been recognized as a major manufacturing and industrial hub. The region’s strong infrastructure, logistics connectivity, and availability of skilled labor make it an ideal site for semiconductor growth. It is already home to major automobile and electronics companies, ensuring that the ecosystem needed for high-end semiconductor assembly and testing is readily available. The presence of reliable power supply, proximity to ports, and supportive state government policies make Sanand a strategic choice for this pilot facility. This initiative complements the Make in India Initiative, which emphasizes high-value, technology-driven industries.

The term OSAT refers to Outsourced Semiconductor Assembly and Test, a vital segment in the semiconductor supply chain. While chip fabrication plants (fabs) manufacture silicon wafers, OSAT facilities handle the crucial processes of assembling, packaging, and testing chips before they can be integrated into devices. This stage ensures chips meet the rigorous standards required for industries ranging from consumer electronics and telecommunications to defense and automotive. By setting up its own OSAT facility, India addresses a critical gap in its ecosystem, positioning itself as not only a design and consumer market but also a key packaging and testing hub.

This move helps India align with nations such as Taiwan and South Korea, which dominate global OSAT services. For further technical insights The Sanand OSAT facility is the result of a strong public-private partnership, led by the Ministry of Electronics and Information Technology (Meaty) and supported by global semiconductor leaders. The initiative aligns seamlessly with the India Semiconductor Mission, which envisions the country as a global hub for design, fabrication, packaging, and testing. By fostering collaboration with international technology firms, India ensures access to cutting-edge expertise, machinery, and best practices. This collaboration will not only strengthen the domestic supply chain but also position India as an attractive destination for global investors. For more information on government policies.

Economic Growth and Job Creation

One of the most significant impacts of this facility will be on employment and economic growth. The Sanand OSAT unit is expected to generate thousands of direct and indirect jobs, ranging from engineers and technicians to logistics and supply-chain roles. Beyond jobs, it creates opportunities for local startups, research institutions, and suppliers to thrive within the semiconductor ecosystem. By reducing dependency on imported chips, India can significantly lower its electronics import bill, supporting domestic industries like Electronics Manufacturing in nation and bolstering the Digital India Mission. This facility also ensures that India’s youth gain exposure to highly specialized skills, preparing them for careers in advanced technology.

The inauguration of the Sanand OSAT facility also has global significance. At present, the majority of OSAT capabilities are concentrated in East Asia, particularly Taiwan, South Korea, and China. With growing geopolitical uncertainties and supply chain disruptions, global technology firms are seeking to diversify their operations. nation entry into this space provides a new, reliable hub for chip packaging and testing. By integrating with global supply chains, India can serve as both a regional and international partner, ensuring resilience and stability in semiconductor availability.

The Road Ahead

The Sanand OSAT pilot line is only the beginning of India’s semiconductor journey. Plans are already in motion to scale this into large-scale commercial facilities, with further investments expected in chip fabrication plants and design centers. By coupling OSAT capabilities with future fabs, India can cover the entire semiconductor value chain, moving from design to testing and packaging within its borders (NORD) This development not only accelerates India’s ambition to become a global tech hub but also reinforces the vision of Atmanirbhar Bharat, where the nation builds self-reliance in critical technologies. The OSAT facility, therefore, is more than infrastructure it is a symbol of India’s determination to claim its place in the global semiconductor race.

The inauguration of the Sanand OSAT facility also has global significance. At present, the majority of OSAT capabilities are concentrated in East Asia, particularly Taiwan, South Korea, and China. With growing geopolitical uncertainties and supply chain disruptions, global technology firms are seeking to diversify their operations. This South Asian hub’s entry into the space provides a new, reliable centre for chip packaging and testing. By integrating with global supply chains, the nation can serve as both a regional and international partner, ensuring resilience and stability in semiconductor availability. For updates on global chip research.