CG Semi unveils one of India’s first end-to-end OSAT facilities in Gujarat’s Sanand

CG Semi is investing ₹7,600 crore over five years to build two advanced facilities in Sanand, with G1 offering 0.5 million-unit daily capacity, full chip assembly-to-testing services, advanced automation systems, and ISO certifications underway

CG Semi, a subsidiary of CG Power and Industrial Solutions and part of the Murugappa Group, has inaugurated its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, marking a significant milestone in India’s journey toward semiconductor self-reliance.

With this launch, CG Semi positions itself among the country’s first full-service OSAT providers, offering solutions across traditional and advanced packaging technologies. The initiative is supported by the central and state governments and developed in collaboration with Renesas and Stars Microelectronics. The company is investing over ₹7,600 crore (approximately USD 870 million) across five years to establish two advanced facilities, G1 and G2, in Sanand.

The G1 facility will operate at a peak capacity of around 0.5 million units per day. It is equipped for end-to-end chip assembly, packaging, testing, and post-test services. Featuring advanced equipment, a Manufacturing Execution System (MES) for automation and traceability, and in-house labs for reliability testing, the facility is undergoing ISO 9001 and IATF 16949 certification. Customer qualification runs are set to begin shortly, with commercial production expected in 2026.

Located three kilometers away, the G2 facility is under construction and is slated for completion by the end of 2026, scaling capacity to 14.5 million units per day. Together, both facilities are projected to create over 5,000 direct and indirect jobs.

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

CG Semi has also focused on workforce readiness by training engineers and technicians in Malaysia, ensuring expertise for large-scale operations. With this launch, the company is set to play a pivotal role in advancing India’s semiconductor ecosystem and the Atmanirbhar Bharat vision.