Engineering firm CG Power and Industrial Solutions Ltd announced on Thursday that its subsidiary, CG Semi Private Ltd, has inaugurated India’s first full-service outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. This development marks a significant milestone in India's semiconductor mission, boosting the nation’s manufacturing self-reliance and its presence in global chip markets.

The new OSAT facility positions CG Semi among the country's pioneering chip packaging and testing providers, offering both traditional and advanced packaging solutions. The initiative, supported by both central and state governments, has been developed in collaboration with global semiconductor players Renesas and Stars Microelectronics.

CG Semi plans to invest more than Rs 76 billion (approx. USD 870 million) over five years to build two advanced facilities—G1 and G2—in Sanand. The G1 unit, inaugurated on August 28, will reach a peak capacity of 0.5 million units per day and is equipped for end-to-end chip assembly, packaging, testing, and post-test processes. It boasts high-yield machinery, a level-1 automated manufacturing execution system (MES) for traceability, and in-house labs for failure and reliability analysis. The facility is currently undergoing ISO 9001 and IATF 16949 certifications, with customer qualification runs set to begin shortly.

Commercial production is expected to start in calendar year 2026, in line with CG Semi’s commitment to India Semiconductor Mission (ISM). Meanwhile, the G2 facility—located 3 km from G1—is under construction and will scale operations to handle up to 14.5 million units daily by the end of 2026. Combined, the two sites are projected to create over 5,000 direct and indirect jobs.

Speaking at the launch, CG Power Chairman Vellayan Subbiah called the facility a “national milestone,” underscoring its significance in the Indian government’s vision of technological sovereignty. “Every chip we make here is a step toward India's self-reliance,” he said.