Chip Firms Prepare Pilots, CG Semi to Be First Off the Block

Murugappa Group Co Set to Launch Chip Prototypes Out of Pilot Production Lines This Year

- Jatin Grover

India's semiconductor ambitions are moving from paper to reality, with CG Semi—a Murugappa Group subsidiary—set to roll out the first Made-in-India chip by the end of the year. CG Semi, along with Micron, Tata Electronics and Kaynes, is gearing up to launch chip prototypes out of pilot production lines this year, with commercial rollout starting next year.

"All the first four units that got approved are going to complete their pilot line within this year. Fab will take time," IT minister Ashwini Vaishnaw said in a media interaction on Thursday.

The announcement came during the launch of CG Semi's pilot Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

While full-scale fabrication facilities are still in development, pilot lines or small-scale production setups used to test chip batches are nearing completion.

The first chip coming out of CG Semi's plant assumes significance as the company's project was approved for 50% capital support from the government in February 2024.