CG Semi launches Rs. 7,600 crore, India’s first OSAT facilities in Gujarat

This marks India’s first step towards semiconductor sovereignty

CG Semi, one of India’s first dedicated Outsourced Semiconductor Assembly and Test (OSAT) companies, established as a joint venture between CG Power and Industrial Solutions (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics, has announced the launch of its first OSAT facility in Sanand, Gujarat.

With this launch, CG Semi becomes one of India’s first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies.

This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets.

Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs. 7,600 crore (~US$ 870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat.

The G1 facility, inaugurated today, will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and posttest services. The facility features high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis. It is currently undergoing ISO 9001 and IATF 16949 certification.

Customer qualification runs across various packages will begin following the inauguration. CG Semi is on track to commence commercial production in calendar year 2026, as committed to ISM.

Located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.

Speaking at the inauguration, Vellayan Subbiah, Chairman, CG Power, said, “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty.”

To build and operate the OSAT, CG Semi has brought together a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also made significant strides in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training—ensuring a faster learning curve and readiness for high-volume operations.