+
CG Semi Launches Rs 76 Billion OSAT Facility in Gujarat
Technology

CG Semi Launches Rs 76 Billion OSAT Facility in Gujarat

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train’s Surat-Vapi Section Set for 2027

The first section of the Mumbai-Ahmedabad Bullet Train corridor, linking Surat and Vapi, is targeted to begin services in 2027. Construction is expected to be completed by December 2026, while Railway Minister Ashwini Vaishnaw has indicated that an inauguration could take place around the middle of 2027. The National High Speed Rail Corporation (NHSRCL) said the train being manufactured in India is expected to reach the tracks around April or May 2027. The train will undergo extensive testing before the section is opened for passenger services. The project began construction in 2021 and includ..

Next Story
Infrastructure Transport

Indian Railways Approves Four Projects Worth Rs. 7.36 bn Across Four States

Indian Railways has approved four projects with a combined value of Rs. 7.36 bn across Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. The programme covers train protection, signalling, electric traction supply and a road overbridge, with each project assigned to a different railway zone. In Uttar Pradesh, Rs. 2.52 bn has been approved to extend the Kavach 4.0 automatic train protection system across 607.7 km in the Lucknow Division of North Eastern Railway. The system monitors train movements and can apply the brakes if a driver fails to observe a signal or exceeds a safe speed. The w..

Next Story
Infrastructure Urban

Chandru Raheja Sells 1.49% Stake in Mindspace REIT for Rs. 5 bn

Billionaire Chandru Lachmandas Raheja has sold a 1.49 per cent holding in Mindspace Business Parks REIT for Rs. 5 bn through a bulk deal on the BSE. The transaction involved 9.9 mn units and was executed at an average price of Rs. 505 per unit, according to exchange data. Following the sale, units of Mindspace Business Parks REIT were trading 0.18 per cent lower at Rs. 504.05 on Tuesday. Exchange data did not identify the buyers involved in the transaction. Raheja is the chairman of real estate company K Raheja Corp. The sale involved 99,00,990 units, representing 1.49 per cent of the Mumbai-b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code