CG Semi Ignites India's Chip Ambitions with G1 Facility Launch

SANAND, GUJARAT – July 04, 2026 – In a landmark event for India's technology sector, CG Semi Private Limited today announced the commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand. The launch, celebrated in the presence of Hon’ble Prime Minister Shri Narendra Modi and other senior dignitaries, signifies a monumental step in the nation's journey toward semiconductor self-reliance and its ambition to become a global manufacturing hub.

CG Semi, a strategic joint venture between India's CG Power and Industrial Solutions Ltd. (of the Murugappa Group), Japan's Renesas Electronics Corporation, and Thailand's Stars Microelectronics, has officially begun shipping its first consignments. This achievement marks the culmination of rapid development, from the foundation stone being laid in March 2024 to the start of commercial operations, underscoring the project's efficient execution and strategic national importance.

A Milestone for India's Semiconductor Ambitions

The operationalization of the G1 facility is a cornerstone of the India Semiconductor Mission (ISM), a government-led initiative designed to build a robust domestic ecosystem for chip design and manufacturing. Backed by significant support from both the central and Gujarat state governments, the project is a powerful testament to the "Make in India for the World" vision. By establishing advanced OSAT capabilities on Indian soil, CG Semi directly addresses the global need for diversified and resilient supply chains while reducing India's dependence on semiconductor imports.

Industry analysts note that the launch validates the government's strategic push to attract high-tech manufacturing. "Having domestic OSAT capacity is not just a commercial win; it's a strategic imperative," commented one supply chain expert. "It closes a critical gap in the electronics value chain, enabling everything from design to final product integration to happen within the country." This development is expected to catalyze further investment across the electronics sector, fostering innovation and strengthening India's technological sovereignty.

Global Expertise Meets Local Manufacturing Prowess

The success of CG Semi is built on a unique and powerful joint venture that combines diverse global strengths. CG Power, holding a majority 92.3% stake, brings nearly nine decades of manufacturing excellence and deep expertise in scaling complex industrial operations in India. This foundation is crucial for managing the intricate processes of high-volume semiconductor assembly and testing.

Japan-based Renesas Electronics, a global leader in microcontrollers and advanced semiconductor solutions, contributes cutting-edge technology and serves as a vital anchor customer, ensuring initial demand and providing a clear pathway for the facility's output. The partnership aligns with Renesas's goal of expanding its footprint in the rapidly growing Indian market. Stars Microelectronics from Thailand provides over two decades of specialized expertise in OSAT processes, offering critical technology, training, and enablement for the facility's workforce.

This synergistic collaboration is the engine behind CG Semi's vision. The combined investment of over ₹7,600 crore (approx. $870 million) over five years is set to develop two world-class facilities, G1 and G2, positioning the venture as a formidable player in the global OSAT market, which is projected to exceed $58 billion by 2030.

Powering the Future: Inside the State-of-the-Art G1 Facility

Inaugurated in August 2025, the G1 facility in Sanand is engineered for precision, quality, and scale. With a peak capacity of up to 300 million units per year, the plant is equipped to handle a wide array of semiconductor packages catering to diverse and demanding markets, including automotive, industrial, consumer electronics, 5G, and IoT.

The facility's capabilities span both legacy packages like QFN and QFP and advanced formats such as Flip-Chip Ball Grid Array (FC BGA) and Flip-Chip Chip Scale Package (FC CSP). This versatility allows CG Semi to serve a broad spectrum of global customers. Quality is embedded in the operational DNA of the G1 plant, which features high-yield production systems, robust process controls, complete manufacturing traceability, and in-house reliability and failure analysis labs to meet the most stringent international standards.

Looking ahead, the development of the G2 facility, which is already underway, will dramatically scale CG Semi's production. Once both plants are fully operational, their combined capacity is projected to reach an astounding 4.7 billion chips annually, cementing India's position on the world's semiconductor map.

Cultivating a Silicon Hub in Gujarat

The impact of CG Semi extends far beyond the factory walls, acting as a catalyst for regional economic growth and talent development. The facility is a cornerstone of Sanand's rapid transformation into a burgeoning semiconductor cluster, joining other key players like Micron and Kaynes Semicon in creating a vibrant ecosystem for high-tech manufacturing.

A core part of CG Semi's mission has been the cultivation of a skilled local workforce. The company has invested heavily in comprehensive training programs for Indian engineers, operators, and technicians, preparing them for the demands of high-volume OSAT operations. This focus on skill development not only ensures operational excellence but also builds a sustainable talent pipeline, strengthening India's human capital for the future of electronics manufacturing.

Speaking on the historic first shipment, Mr. Vellayan Subbiah, Chairman of CG Power, stated, “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.” This sentiment captures the spirit of the project—a fusion of global collaboration, government vision, and dedicated local talent working in concert to build the future, one chip at a time.