India is on the cusp of a major technological leap with the impending launch of its first 'Made in India' semiconductor chip, as announced by Union Minister of Electronics and Information Technology, Ashwini Vaishnaw. This landmark development, reported on Thursday, August 28, 2025, signifies a crucial step in the nation's journey towards self-reliance in the critical electronics and IT sector. The indigenous chip will be produced by CG Semi, a joint venture primarily owned by the Indian company CG Power and Industrial Solutions.

Speaking at the inauguration of CG Semi's facility in Sanand, Gujarat, Minister Vaishnaw revealed that the company's outsourced semiconductor assembly and testing (OSAT) pilot facility, referred to as the G1 facility, will be responsible for manufacturing this in-house semiconductor chip. He specified that this pilot line is projected to produce 0.5 million, or 5 lakh, 'Made-in-India' chips daily, with production anticipated to commence soon. Vaishnaw underscored the strategic importance of this pilot line, explaining that it will play a vital role in qualifying the chips for customer approval and preparing them for large-scale commercial production, thus establishing a foundation for future semiconductor manufacturing.

Vellayan Subbaiah, chairman of CG Power, echoed the sentiment of national pride, stating, “Our facility represents more than a milestone for me, CG. It is a national milestone. It shows how government, industry can come together at a scale.” He further emphasized the need for concerted industry support to build upon this initial launch, urging industries to facilitate the transition from making chips to actively utilizing 'Made in India' chips as the nation's demand continues to grow.

Looking ahead, CG Semi has ambitious plans for a much larger G2 facility, which is designed to span 28–32 acres. This expansive plant is envisioned to dramatically increase production capacity to nearly 14.5 million units of chips per day. According to Minister Vaishnaw, construction for the G2 facility is slated to begin in 2026, with full-scale production expected to commence by 2027, marking a significant ramp-up in India's domestic chip manufacturing capabilities.

The push for indigenous chip production extends beyond CG Semi, with other key players also making significant progress. Vaishnaw highlighted that construction for Micron's pilot plant is advancing rapidly, with an expected production start by December 2025 or January 2026. Additionally, a pilot line in Assam is under construction, and Kaynes Technology is also set to initiate its pilot line by the end of the current year. These simultaneous developments indicate a concerted national effort to establish a robust and diversified semiconductor manufacturing ecosystem within India.

CG Semi itself is a joint venture predominantly owned by Mumbai-based CG Power and Industrial Solutions, a prominent entity within the Murugappa Group. The venture also includes significant international stakeholders such as Japan's Renesas Electronics Corporation and Thailand's Stars Microelectronics, bringing together diverse expertise and resources. Following these positive announcements, shares of CG Power and Industrial Solutions experienced a notable uptick, closing 4.6% higher 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 in the Indian stock market, reflecting investor confidence in the future prospects of India's semiconductor industry.