CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Limited and part of the Murugappa Group, has unveiled its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This facility positions CG Semi as one of India’s pioneering full-service OSAT providers, offering a complete range of services spanning traditional and advanced packaging technologies. This achievement marks a significant step toward India’s semiconductor self-reliance and contributes to the nation’s broader goal of strengthening its capabilities in this critical sector.
The launch of this facility follows robust support from both central and state governments, alongside collaborations with global industry leaders such as Renesas and Stars Microelectronics. CG Semi is making an investment of over ₹7,600 crore (~USD 870 million) over the next five years to develop two state-of-the-art facilities in Sanand. The first of these, the G1 facility, which began operations today, is designed to reach a peak capacity of approximately 0.5 million units per day. The G1 facility will handle the entire spectrum of chip assembly, packaging, testing, and post-test services, supported by high-performance equipment and a sophisticated Manufacturing Execution System (MES) ensuring automation and traceability.
CG Semi’s OSAT facility represents a major step forward in strengthening India’s semiconductor manufacturing ecosystem. The first site, known as G1, is equipped with high-yield production systems and in-house laboratories dedicated to reliability testing and failure analysis. The facility is also in the process of securing ISO 9001 and IATF 16949 certifications, underscoring its commitment to global quality standards. Following its inauguration, customer qualification runs will commence, marking the transition toward large-scale operations.
To further expand its manufacturing footprint, CG Semi has begun constructing a second site, G2, located just three kilometers from the G1 facility. Scheduled for completion by the end of 2026, G2 is designed for high-volume capacity, with the ability to process approximately 14.5 million units per day once fully operational. This expansion will substantially enhance India’s capacity to meet growing global demand for semiconductors.
A strong emphasis has also been placed on preparing the workforce to meet the demands of advanced semiconductor production. Engineers, operators, and technicians from CG Semi have been sent to Malaysia for specialized training, ensuring they are equipped with the necessary expertise to deliver world-class operational standards once mass production begins.
The company’s focus on workforce readiness extends beyond technical training, aiming to foster long-term skill development and strengthen India’s pool of semiconductor professionals. This approach not only ensures operational excellence but also creates opportunities for knowledge transfer and sustained industry growth within the region.
In terms of economic impact, CG Semi’s dual facilities are expected to create over 5,000 direct and indirect jobs once they are fully operational. This will significantly contribute to local employment, stimulate regional economic activity, and reinforce India’s position as a growing hub for semiconductor manufacturing and innovation.
Vellayan Subbiah, Chairman of CG Power, highlighted the significance of the project, saying, “This facility represents a national milestone in our journey toward semiconductor sovereignty. It showcases how collaboration between the government and industry can achieve great scale and capital investment, ultimately contributing to India’s technological independence.”
CG Semi, a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, offers comprehensive semiconductor assembly and testing solutions for a range of applications, including automotive, defense, infrastructure, and IoT. The company operates from its headquarters in Sanand, Gujarat.
The Murugappa Group, with a history spanning over 125 years, is a conglomerate with diverse interests in agriculture, engineering, financial services, and more. With a workforce of 94,041 employees, the group operates nine publicly listed companies and owns iconic brands in sectors like auto components, abrasives, electric vehicles, and fertilisers.
