CG Semi Pvt Ltd (CG Semi), a joint venture between CG Power and Industrial Solutions Ltd of Murugappa Group, Japan’s Renesas Electronics Corporation and Stars Microelectronics, has commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
The commercial launch took place in the presence of Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel, and Union Minister Ashwini Vaishnaw.
G1 facility enters commercial operations
The G1 facility, inaugurated in August 2025, has a peak production capacity of up to 300 million semiconductor units annually. Since its inauguration, the facility has completed equipment installation, process stabilisation, workforce training, customer qualification and quality readiness, paving the way for commercial production.
With operations now underway, CG Semi said it is positioned to serve customers across global markets.
₹7,600-crore investment planned
Supported by the Central and Gujarat governments, CG Semi is investing more than ₹7,600 crore over five years to establish two OSAT facilities—G1 and G2.
While the G1 facility has entered commercial production, construction and development of the G2 facility are underway. Once operational, the second unit is expected to significantly enhance the company’s production capacity.
Focus on talent and quality
CG Semi said it has built a strong talent pool by bringing together semiconductor professionals with expertise in assembly, packaging and testing.
The company has also invested in training Indian engineers, operators and technicians for high-volume OSAT operations, contributing to the country’s growing semiconductor talent ecosystem.
The G1 facility is equipped with high-yield production systems, robust process controls, manufacturing traceability, and in-house reliability and failure analysis capabilities to ensure quality standards.
Chairman comments
CG Power Chairman Vellayan Subbiah said the commencement of commercial production marks a significant milestone for the company.
“Today, this first shipment speaks louder than any words. It reflects the enormous belief behind these small chips and the combined effort of a remarkable team,” he said.