India’s First Chip: What Type of Semiconductor Is Being Made and Why It’s a Game-Changer

Debjyoti Barman

If the smartphone is the daily driver of modern life, the chip inside is its beating heart—and India is finally building that heart at home. With the Sanand OSAT facility moving from inauguration to customer qualifications, the country is set to roll out its first packaged, “Made-in-India” semiconductor chip, backed by a ₹7,600 crore build-out and global partners.

Let’s unpack what chip type it is, why it matters—and how it can supercharge India’s tech game.

Know the Chip Type – Compound Semiconductors (Silicon Carbide & GaN)

What’s happening: CG Semi’s pilot facility in Sanand, Gujarat (G1 line) will roll out India’s first Made in India chip. It’s likely based on compound semiconductors like Silicon Carbide (SiC) and Gallium Nitride (GaN)—perfect for high-power, high-frequency uses. This isn’t your regular silicon wafer; think of it as masaledar biryani versus plain rice. It packs way more punch.

MoneyVai Hack: For investors, track companies focusing on SiC/GaN—they’re like the startup-selling pav bhaji at ₹100 when everyone else sells bread at ₹20. High margins, high growth.

Why It’s a Game-Changer – Power, Self-Reliance & Atmanirbhar Bharat

1. Swadeshi Power: These chips are critical for EVs, 5G, renewable energy—in short, India’s tech ambitions.
2. Made in India Products: Cheaper, localized chips will reduce production cost for phones, motors, solar inverters—you’ll get more value when you buy Indian.
3. Import Savings: No more dollar drain for basic chips — it’s like growing your own veg rather than buying from the mandi.

MoneyVai Hack: Businesses manufacturing EVs or solar inverters—source local SiC chips when available. Can lower BOM cost by 15–20%.

How Will Sanand’s Chips Change Prices of Made in India Products?

Think about it—chips are like masala in biryani. Without them, everything tastes (or works) bland. Right now, Indian companies import almost all chips, paying heavy duties and forex costs.

With Sanand rolling out chips:

• Smartphones: Local assembly + local chips = at least ₹3,000–₹5,000 cheaper phones.
• EVs: Expect EVs under ₹8 lakh soon, thanks to cheaper SiC chips.
• 5G Data Costs: Telecom operators can reduce network setup costs, which could lower your monthly bill.

MoneyVai Hack: Don’t rush to buy the latest phone today. Wait 12–18 months. A “Made in India chip” phone will be cheaper and possibly more efficient.

Pilot & Scale Setup

• Pilot Line (G1): Can produce 0.5 million chips/day, used to qualify for clients. After that, full facility (G2) aims to hit 14–15 million chips/day by 2027.
• Mass Roll-Out: PM Modi confirmed the chip will hit the market by end-2025.
• ₹7,600 crore investment by CG Semi in OSAT facility, plus ten total projects under India Semiconductor Mission (ISM), now investing around ₹1.6 lakh crore.

MoneyVai Hack: Watch ISM’s new projects—high-scale fab opportunities often fire up local ancillary industries too, like component makers.

Government Backing

Tata’s Assam Plant

Tata’s ₹27,000 crore Semiconductor Assembly & Test (TSAT) in Assam aims to produce 4.83 crore chips/day and create ~27,000 jobs. That’s like local mandi creating entire supply chain—farmers, transporters, vendors.

Government Push

• ISM Launched 2021 with ₹76,000 crore—target: chip fabs, design, ATMP, startup support. Market was ~$38 bn in 2023; aiming for $100–110 bn by 2030. Press Information BureauThe Times of IndiaCarnegie Endowment
• Skilling 85,000 engineers in semiconductor manufacturing. Press Information Bureau
• Odisha gets first commercial SiC fab worth ₹4,009 crore and advanced packaging units approved. The Times of India

MoneyVai Hack: Individuals—if you’re an engineering grad, grab semiconductor internships now. Early movers get placements in ₹6–12 lakh/year roles.

Types of Semiconductor in India’s Focus

India is zooming straight to compound semiconductors—the high-mileage lanes of chip tech.

Vai Hai Saath , Chhodo Tension ki Baat

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