CG Semi Private Limited (CG Semi), a subsidiary of CG Power and Industrial Solutions Ltd and part of the Murugappa Group, has inaugurated India’s first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
With this launch, CG Semi emerges as one of India’s earliest full-service OSAT providers, offering both traditional and advanced chip packaging solutions. The initiative supports India’s broader push toward semiconductor self-reliance while catering to global demand.
₹7,600 Crore Investment Plan
Backed by strong central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi plans to invest over ₹7,600 crore (~USD 870 million) across two facilities in Sanand — G1 and G2.
- G1 Facility (Inaugurated Today): Equipped for chip assembly, testing, and packaging with a peak capacity of 0.5 million units per day. It features an advanced Manufacturing Execution System (MES) for automation and traceability, reliability testing labs, and high-yield equipment. Certification under ISO 9001 and IATF 16949 is in progress. Commercial production is slated for 2026.
- G2 Facility (Under Construction): Located 3 km from G1, this plant is expected to be completed by late 2026. With a peak capacity of 14.5 million units per day, G2 will dramatically scale India’s OSAT output. Together, G1 and G2 are projected to create over 5,000 direct and indirect jobs.
Talent and Training
To ensure readiness, CG Semi has built a leadership team of seasoned semiconductor professionals with 1,000+ years of combined global experience. Indian engineers and technicians underwent intensive training in Malaysia to prepare for the facility’s operations.
At the inauguration, Mr. 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 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.”
Outlook:
The launch of CG Semi’s OSAT facility in Sanand marks a defining moment in India’s semiconductor journey. By combining advanced technology, strong global partnerships, and government support, CG Semi is positioning India as a credible player in the global chip value chain. With its phased investments, large-scale capacity, and skilled workforce, the initiative not only strengthens India’s semiconductor self-reliance but also promises to create thousands of jobs and foster innovation. This milestone underscores India’s growing importance in the global electronics ecosystem and paves the way for sustained progress in high-tech manufacturing.
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