In Shorts:
- India’s first made-in-India semiconductor chips will be produced by December 2024 from CG Power’s new Sanand facility.
- The project, a joint venture with Japanese giant Renesas, represents a major success under the government’s $10 billion PLI scheme for chip manufacturing.
- This milestone is poised to reduce import dependency and strengthen the country’s electronics and automotive supply chains.
SANAND, GUJARAT – India’s ambitious quest to become a global hub in the strategic semiconductor sector has reached a pivotal moment. The nation is poised to witness the rollout of its first-ever indigenous semiconductor chip by the end of this year, a significant leap forward in its technological self-reliance agenda.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, made the landmark announcement during a review of the upcoming CG Power chip facility in Sanand, Gujarat. The project, a strategic joint venture between the Indian conglomerate and Japan’s Renesas Electronics Corporation, a world leader in chip design, is one of the first to bear fruit under the government’s comprehensive $10 billion semiconductor production-linked incentive (PLI) scheme.
“This is a defining moment for India’s electronics and manufacturing ecosystem. The first ‘designed-in-India’ chip is expected to be released for production by December,” Minister Vaishnaw stated, underscoring the project’s rapid progress since its approval just three months ago.
The Sanand unit is being set up with a substantial investment of ₹7,600 crore and is specifically focused on manufacturing chips for critical sectors such as consumer electronics, industrial applications, and the rapidly expanding automotive industry. This move is strategically crucial for reducing India’s heavy dependence on semiconductor imports, which has often left industries vulnerable to global supply chain disruptions.
The government’s semiconductor mission, championed by Prime Minister Narendra Modi, is designed to create a complete and holistic ecosystem for chip manufacturing within the country. This extends beyond just fabrication plants (fabs) to include vital supporting industries like glass substrate manufacturing and the development of advanced packaging facilities.
The success of the CG Power-Renesas venture signals strong international confidence in India’s semiconductor potential and its skilled workforce. The production of the first indigenous chip is not just a symbolic achievement; it represents the foundational step toward building a resilient, self-sufficient, and globally competitive electronics manufacturing landscape, truly embodying the ‘Make in India’ spirit.
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