Quick Summary: CG Power’s subsidiary CG Semi has inaugurated its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, with an investment of over ₹7,600 crore. Backed by government support and partnerships with Renesas and Stars Microelectronics, the facility marks one of India’s first end-to-end semiconductor packaging and testing units. The project is expected to create more than 5,000 jobs and begin commercial production by 2026, strengthening India’s semiconductor self-reliance and global competitiveness.
Full Article: CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Limited and part of the Murugappa Group, has inaugurated its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This development positions the company among India’s earliest full-service OSAT providers, covering both traditional and advanced packaging technologies.
The initiative represents a significant milestone in India’s efforts to strengthen domestic semiconductor manufacturing and reduce reliance on imports. Supported by central and state governments, CG Semi is collaborating with Renesas Electronics Corporation and Stars Microelectronics to invest over ₹7,600 crore (approximately USD 870 million) in establishing two facilities in Sanand.
The newly launched G1 facility will operate at a peak capacity of 0.5 million units per day, offering services such as assembly, packaging, testing, and post-test operations. The facility is equipped with advanced automation systems, high-yield equipment, and in-house laboratories for reliability and failure analysis. It is currently undergoing ISO 9001 and IATF 16949 certification, with commercial production scheduled to commence in 2026.
Construction of the G2 facility, located three kilometers from G1, is expected to be completed by the end of 2026. Once operational, it will scale up production to about 14.5 million units per day. Together, both plants are projected to create more than 5,000 direct and indirect jobs.
Speaking at the inauguration, Vellayan Subbiah, Chairman of CG Power, described the facility as a “national milestone,” emphasizing its importance in advancing India’s technological self-reliance.
To support operations, CG Semi has assembled a leadership team with extensive semiconductor industry experience and trained engineers, operators, and technicians in Malaysia for hands-on expertise.