Ahmedabad, Aug 28 CG Semi on Thursday unveiled one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facilities in Sanand, Gujarat, marking the country’s first step towards semiconductor sovereignty.
Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand.
Union Railways and Electronics and IT Ashwini Vaishnaw said this is the beginning of the CG Semi Private Limited’s Pilot Production facility in Sanand.
The G1 facility, inaugurated on Thursday, 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 post-test 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, said the company.
Located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of 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, the company informed.
CG Semi is a subsidiary of CG Power and Industrial Solutions Limited and part of the Murugappa Group.
“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 Prime Minister. Every chip we make here is a step toward India’s technological sovereignty,” said Vellayan Subbiah, Chairman, CG Power.
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 inauguration of CG Semi Private Limited’s Pilot Production facility in Sanand today marks a significant leap in India’s semiconductor manufacturing journey. Coming just ahead of the ‘SEMICON India 2025’ mega event, this milestone showcases India’s capability to deliver high-tech manufacturing at scale,” said Ashok Chandak, CEO and President, SEMI India and IESA.
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