Sanand, Gujarat: CG Semi, 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.
With this development, CG Semi becomes one of India’s first end-to-end OSAT providers, delivering advanced and traditional semiconductor packaging and testing solutions.
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CG Semi OSAT Facility in Sanand: A Step Toward Atmanirbhar Bharat
Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing more than ₹7,600 crore (~USD 870 million) over five years to establish two state-of-the-art semiconductor facilities in Sanand – G1 and G2.
The G1 facility, inaugurated today, has a peak capacity of 0.5 million units per day. It includes advanced equipment for chip assembly, packaging, testing, and post-test services.
The plant is equipped with a Manufacturing Execution System (MES) for Level 1 automation and traceability, in-house reliability labs, and is currently undergoing ISO 9001 and IATF 16949 certifications. Commercial production is expected to commence in 2026.
Located three kilometers away, the G2 facility is under construction and scheduled for completion by the end of 2026. Once operational, it will scale up capacity to 14.5 million units per day. Combined, the two facilities are expected to create over 5,000 direct and indirect jobs.
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.”
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To ensure operational readiness, CG Semi has trained engineers, technicians, and operators in Malaysia for hands-on experience, enabling a faster transition into high-volume manufacturing.
With a leadership team carrying over 1,000 years of combined semiconductor experience, the company is positioned to play a critical role in advancing India’s semiconductor self-reliance.
