Story perspectives

Modi Opens CG Semi Plant, India Begins Chip Exports

7/5/2026

Summary

Modi Launches Plant

Prime Minister Narendra Modi inaugurated commercial production at CG Semi’s Sanand semiconductor plant.
The 27-month, Rs 7,500 crore facility will produce 20 crore chips annually and aims for 5 billion per year.
CG Semi shipped its first batch to Renesas customers, marking the start of Indian chip exports.
The India Semiconductor Mission’s budget rose to Rs 76,000 crore, with an additional Rs 1,000 crore allocated for FY 2026-27.

Summary

India Launches Clusters

The speaker announced India will build semiconductor clusters modeled on Silicon Valley, Hsinchu and Japan’s Silicon Island across several states.
Officials said the ecosystem will cover design, fabrication, packaging and domestic production of critical minerals as the next phase of Make in India.
The plan promises millions of jobs and AI, robotics and startup opportunities, and notes that multiple states have already launched clusters beyond Gujarat’s Sanand plant.

Summary

CG Power Ships

The CG Semi OSAT plant shipped products on July 3 2026 to Japan, United States and Europe.
The plant is 92.3% owned by CG Power and Industrial Solutions of the Murugappa Group, with a INR7,600 crore investment.
Trained in Malaysia, women from Gujarat’s tribal communities work on the line.
G2 OSAT line, to start by end of 2026, will benefit from Mumbai-Ahmedabad rail corridor to boost logistics by 2027.

History

Historical Context

After Prime Minister P.V. Narasimha Rao inaugurated the Software Technology Parks scheme in 1995—coinciding with Technopark’s dedication that year—India’s software exports surged from under 4 % of total exports in FY 1998 to roughly 25 % by FY 2012. Today, Prime Minister Narendra Modi and CG Power’s Murugappa Group echo that policy push with the Make-in-India semiconductor drive.

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Modi Launches Plant

Prime Minister Narendra Modi inaugurated commercial production at CG Semi’s Sanand semiconductor plant.
The 27-month, Rs 7,500 crore facility will produce 20 crore chips annually and aims for 5 billion per year.
CG Semi shipped its first batch to Renesas customers, marking the start of Indian chip exports.
The India Semiconductor Mission’s budget rose to Rs 76,000 crore, with an additional Rs 1,000 crore allocated for FY 2026-27.

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