CG Semi Private Limited, a joint venture involving CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation, and Stars Microelectronics, has announced the commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The launch event was attended by high-profile Indian government officials, including Prime Minister Narendra Modi, underscoring the strategic importance of this development for India.
The G1 facility, which was inaugurated in August 2025, boasts a peak annual production capacity of up to 300 million units. Since its inauguration, the facility has undergone a comprehensive preparatory phase, including the installation of equipment, stabilisation of production processes, extensive workforce training, customer qualification, and readiness for stringent quality standards. With commercial operations now underway, CG Semi is poised to supply semiconductor components to a global customer base.
This initiative is part of a broader, substantial investment plan by CG Semi, supported by both central and state governments in India. The company is investing over ₹7,600 crore (approximately £720 million) over a five-year period to establish two OSAT facilities. While G1 is now operational, a second facility, G2, is currently under development. Once completed, G2 is expected to significantly expand CG Semi's overall production capacity, further cementing India's footprint in the global semiconductor industry.
CG Semi has also placed a strong emphasis on talent development, assembling a team of experienced semiconductor professionals across assembly, packaging, and testing disciplines. The company has actively invested in training Indian engineers, operators, and technicians, equipping them with the necessary skills for high-volume OSAT operations. This focus on local talent aims to bolster India's indigenous semiconductor expertise and reduce reliance on foreign skilled labour.
Quality assurance has been a core principle for CG Semi from the outset. The G1 facility incorporates advanced high-yield production systems, robust process controls, and comprehensive manufacturing traceability. Furthermore, it is equipped with in-house capabilities for reliability testing and failure analysis, ensuring that the manufactured components meet rigorous international standards for performance and durability.
Mr. Vellayan Subbiah, Chairman of CG Power, highlighted the significance of the achievement, stating, “Today, 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.” This milestone is seen as a pivotal moment in India's journey towards becoming a key player in the global semiconductor supply chain.