CG Power & Industrial Solutions , through its subsidiary CG Semi Private Limited, has unveiled one of India's first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facilities in Sanand, Gujarat. This landmark development marks a significant step towards India's semiconductor sovereignty and strengthens the country's position in the global semiconductor industry.

Investment and Capacity

The company is making a substantial investment of over ₹7,600.00 crore (approximately USD 870.00 million) over five years to develop two state-of-the-art facilities, G1 and G2, in collaboration with Renesas and Stars Microelectronics. This investment aligns with India's vision of becoming self-reliant in semiconductor manufacturing while also serving global markets.

G1 Facility

The newly inaugurated G1 facility boasts impressive capabilities:

• Peak capacity: Approximately 0.50 million units per day
• Services: End-to-end chip assembly, packaging, testing, and post-test services
• Features: High-yield equipment, cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability
• In-house labs for reliability and failure analysis
• Certifications: Currently undergoing ISO 9001 and IATF 16949 certification

Commercial production at the G1 facility is expected to commence in 2026.

G2 Facility

Located about 3 km from G1, the G2 facility is currently under construction:

• Expected completion: End of 2026
• Projected capacity: Approximately 14.50 million units per day

Job Creation and Economic Impact

The combined operations of both facilities are projected to generate over 5,000 direct and indirect jobs in the coming years, contributing significantly to the local economy and India's semiconductor ecosystem.

Expertise and Workforce Development

CG Semi has assembled a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also invested in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training, ensuring a faster learning curve and readiness for high-volume operations.

Leadership Perspective

Mr. Vellayan Subbiah, Chairman of CG Power, emphasized the national significance of this facility, stating, "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."

About CG Semi

CG Semi is one of India's first dedicated OSAT companies, established as a joint venture between CG Power & Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics. The company provides comprehensive turnkey solutions for semiconductor assembly and test, covering advanced and legacy packages such as SOIC, QFP, QFN, BGA, FCQFN, and FCBGA. CG Semi serves diverse applications across industries including Automotive, Defence, Infrastructure, and IoT.

This launch positions CG Semi as a key player in advancing India's Atmanirbhar Bharat vision and strengthening the nation's semiconductor ecosystem. As the facility ramps up operations and moves towards commercial production, it is expected to play a crucial role in reducing India's dependence on semiconductor imports and establishing the country as a global hub for semiconductor manufacturing and testing.

CG Power & Industrial Solutions is making a significant move into the semiconductor industry with the opening of a new chip manufacturing plant this month. This strategic expansion marks the company's entry into the burgeoning semiconductor market, diversifying its portfolio beyond its traditional power and industrial equipment focus.

New Facility Details

The new chip manufacturing facility, set to commence operations by the end of the month, represents a bold step for CG Power. While specific details about the plant's location and capacity have not been disclosed, the company's move into semiconductor production is noteworthy in the context of the global chip shortage and increasing demand for locally manufactured electronic components.

Production Timeline

According to the announcement, CG Power is on track to begin production at the new facility by the end of this month. This rapid timeline from opening to production suggests that the company has been preparing for this expansion for some time and has likely invested significantly in setting up the necessary infrastructure and technology.

Strategic Implications

This venture into chip manufacturing signals CG Power's intent to capitalize on the growing demand for semiconductors across various industries. The move could potentially position the company as a key player in India's push for self-reliance in critical technology sectors.

Market Impact

While it's too early to gauge the full impact of this new venture on CG Power's financial performance, the expansion into semiconductor manufacturing could open up new revenue streams and market opportunities for the company. Investors and industry observers will likely be watching closely to see how this new direction affects CG Power's growth trajectory and market position.

Looking Ahead

As production begins at the new chip manufacturing plant, stakeholders will be keen to learn more about the types of semiconductors being produced, the target markets, and any potential partnerships or supply agreements that CG Power may have secured. The success of this venture could have significant implications for both the company and the broader Indian semiconductor industry.

CG Power's entry into chip manufacturing comes at a time when there is a global focus on diversifying and securing semiconductor supply chains. The company's initiative aligns with broader national goals of enhancing domestic capabilities in critical technology sectors.