A key milestone in India’s semiconductor manufacturing journey
Sanand, Gujarat, 4 July 2026: CG Semi Private Limited
(CG Semi), established as a joint venture
between CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas
Electronics Corporation, and Stars Microelectronics. Headquartered in Gujarat,
CG semi today announced the commencement of
commercial production at its G1 Outsourced Semiconductor Assembly and
Test facility in Sanand. The launch was held in the august presence of Hon’ble Prime Minister of India Shri Narendra Modi, Hon’ble Chief Minister of Gujarat Shri Bhupendra Patel and
Hon’ble Minister of Railways, Information C Broadcasting and Electronics C
Information Technology Shri Ashwini Vaishnaw.
The G1 facility, inaugurated in August 2025, has a peak capacity of up to 300 million units per year. Since inauguration, the facility 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 across the globe.
Backed by central and state government support, and in collaboration between CG
Power, Renesas Electronics Corporation and Stars Microelectronics, CG Semi is investing over ₹7,600 crore over five years
to develop two OSAT facilities – G1 and G2. While G1 has now commenced commercial production, the second facility, G2, is under development and will significantly scale CG Semi’s
production capacity once operational.
CG Semi has built a strong
talent foundation by bringing together semiconductor professionals with deep
experience across assembly, packaging and testing. The company has invested in training Indian engineers, operators, and technicians for high-volume OSAT operations, strengthening India’s semiconductor talent base.
Ǫuality has been central
to CG Semi’s operating model from day one. The G1 facility is equipped with high-yield production systems, robust
process controls, manufacturing traceability, and in-house reliability and
failure analysis capabilities.
Speaking on the occasion, Mr. Vellayan Subbiah,
Chairman, CG Power, said, “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.”