CG Power and Industrial Solutions joint venture CG Semi Private Limited has commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The facility has a peak capacity of up to 300 million units per year. This development marks a significant step in India's semiconductor manufacturing capabilities, supported by central and state government initiatives.

The G1 facility was inaugurated in August 2025. Since then, it has progressed through equipment installation, process stabilization, workforce training, customer qualification, and quality readiness. With commercial production now underway, CG Semi is positioned to serve customers globally.

CG Semi is a joint venture between CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation, and Stars Microelectronics. The company is investing over ₹7,600 crore over five years to develop two OSAT facilities — G1 and G2. While G1 has commenced operations, the second facility, G2, is under development and will scale production capacity once operational.

The company has focused on building a talent foundation by bringing together semiconductor professionals with experience in assembly, packaging, and testing. It has invested in training Indian engineers, operators, and technicians for high-volume OSAT operations. The G1 facility is equipped with high-yield production systems, robust process controls, manufacturing traceability, and in-house reliability and failure analysis capabilities.

Mr. Vellayan Subbiah, Chairman, CG Power, commented on the milestone, stating that the first shipment reflects the belief behind the chips and the team's combined effort.

Key Details of CG Semi's G1 Facility