India is on the cusp of a significant technological advancement with the imminent launch of its first 'Made in India' semiconductor chip, a landmark achievement spearheaded by CG Semi, a joint venture primarily owned by the Indian entity CG Power and Industrial Solutions. Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, announced this development on Thursday, August 28, 2025, during the inauguration of CG Semi's outsourced semiconductor assembly and testing (OSAT) pilot facility in Sanand, Gujarat.

The pilot facility, designated as the G1 facility, is set to commence production of 0.5 million (5 lakh) 'Made-in-India' chips per day. Minister Vaishnaw emphasized the critical role of this pilot line in qualifying chips for customer approval and preparing them for subsequent commercial production. Production at the Gujarat plant is anticipated to begin shortly, marking a pivotal step towards domestic semiconductor manufacturing.

Vellayan Subbaiah, chairman of CG Power, hailed this initiative as a national milestone, underscoring the successful collaboration between government and industry. He stressed that this launch is merely the beginning, calling upon industries to foster mutual support to meet India's burgeoning demand and transition from merely using chips to utilizing those manufactured within the country.

Looking ahead, CG Semi has ambitious plans for its full-scale facility, the G2 facility, which will span 28–32 acres. This larger plant is projected to begin construction in 2026, with full-scale production expected to commence in 2027, aiming for a daily output of approximately 14.5 million units of chips.

The push for indigenous semiconductor production extends beyond CG Semi. Minister Vaishnaw also noted that other major chipmaking companies, including Micron, Kaynes Technology, and Tata, have initiated the construction of their respective pilot lines. Micron's facility is reportedly progressing rapidly and is expected to start production by December 2025 or January 2026. Similarly, the pilot line in Assam is under construction, and Kaynes Technology is also slated to launch its pilot line by the end of 2025.

CG Semi itself is a strategic joint venture with significant international backing. While majority-owned by Mumbai-based CG Power and Industrial Solutions, a Murugappa Group entity, it also includes prominent stakeholders such as Japan's Renesas Electronics Corporation and Thailand's Stars Microelectronics. The news of this domestic chip production milestone positively impacted CG Power and Industrial Solutions' stock, with shares closing up 4.6% at ₹694.15 after Friday's stock market session, compared to ₹663.65 at the previous close. The company's market capitalization stands at over ₹1.09 lakh crore, having previously hit a 52-week high of ₹874.50 on October 11, 2024, and a 52-week low of ₹518.35 on April 7, 2025.