CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Ltd and part of the Murugappa Group, has launched its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. With this milestone, CG Semi emerges as one of India’s first full-service OSAT providers, offering both traditional and advanced chip packaging solutions.

The development signals a major leap in India's semiconductor ecosystem, reinforcing national ambitions for technological self-reliance while also serving global markets. Supported by both central and state governments, and in partnership with Renesas and Stars Microelectronics, CG Semi is investing over Rs 76 billion (approximately USD 870 million) over five years to develop two advanced facilities—G1 and G2—in Sanand.

The G1 facility, inaugurated this week, will reach a peak output of 0.5 million units per day. It is equipped for end-to-end chip assembly, packaging, testing, and post-test services. The plant features cutting-edge manufacturing equipment, Level 1 automation through a Manufacturing Execution System (MES), and in-house laboratories for reliability and failure analysis. G1 is currently undergoing ISO 9001 and IATF 16949 certification, with customer qualification runs set to begin shortly. Commercial production is expected to start in calendar year 2026.

The second facility, G2, located just 3 km from G1, is currently under construction and is slated for completion by the end of 2026. Once operational, it will ramp up to a daily capacity of 14.5 million units. Collectively, the two facilities are expected to generate over 5,000 direct and indirect jobs, significantly contributing to local employment and skill development.

Speaking at the inauguration, CG Power Chairman Vellayan Subbiah remarked, “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.”

To ensure operational excellence, CG Semi has assembled a team of seasoned industry professionals with over 1,000 years of cumulative experience. The company has also prioritised workforce training by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on learning, ensuring readiness for high-volume operations from day one.

With the launch of the G1 facility, CG Semi is set to play a pivotal role in realising the Atmanirbhar Bharat vision and advancing India’s position in the global semiconductor value chain.