Marking a major milestone for India’s semiconductor ambitions, CG Semi has commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand in Gujarat.
CG Semi is the semiconductor JV between CG Power and Industrial Solutions of the Murugappa Group, Renesas Electronics Corporation and Stars Microelectronics -- the aim of which is to build a globally competitive semiconductor manufacturing ecosystem.
The commencement of commercial production was announced in the presence of Prime Minister Narendra Modi, Chief Minister of Gujarat Bhupendra Patel, and Minister of Railways, Information & Broadcasting and Electronics & Information Technology Ashwini Vaishnaw.
The G1 facility, inaugurated in August 2025, has an annual peak production capacity of up to 300 million units. Over the past year, the plant has completed equipment installation, process stabilisation, workforce training, customer qualification and quality readiness, paving the way for commercial operations.
With production now underway, CG Semi is positioned to serve customers across global markets.
Supported by the Central and Gujarat state governments, CG Semi is investing more than ₹7,600 crore over five years to establish two OSAT facilities—G1 and G2. While G1 has now entered commercial production, the larger G2 facility is under development and is expected to significantly expand the company's manufacturing capacity once operational.
The company has also focused on building a skilled semiconductor workforce by recruiting experienced industry professionals and investing in the training of Indian engineers, operators and technicians for high-volume assembly, packaging and testing operations, strengthening the country's semiconductor talent pipeline.
Quality remains at the core of the company's manufacturing strategy. The G1 facility is equipped with high-yield production systems, advanced process controls, comprehensive manufacturing traceability, and in-house reliability and failure analysis capabilities designed to meet global customer requirements.
Vellayan Subbiah, Chairman, CG Power, said, "...this first shipment speaks louder than any words. It reflects the enormous belief behind these small chips and the combined effort of a remarkable team.”
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