CG Semi Launches India’s First End-to-End OSAT Facility in Sanand, Gujarat, Advancing Semiconductor Sovereignty!
By Ashutosh Arora
CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Limited and part of the Murugappa Group, has announced the launch of India’s first full-scale Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This milestone marks a decisive step forward in India’s pursuit of semiconductor sovereignty, positioning CG Semi among the country’s pioneering providers of comprehensive packaging and testing services for the semiconductor industry.
The new OSAT facility underscores India’s ambition to strengthen its domestic semiconductor ecosystem, reducing dependence on imports and building capabilities to support global supply chains. Backed by strong support from both central and state governments, the project has also benefited from strategic partnerships with international industry leaders such as Renesas and Stars Microelectronics. CG Semi plans to invest over ₹7,600 crore (approximately USD 870 million) over the next five years to establish two state-of-the-art facilities in Sanand, designed to meet both domestic requirements and international demand.
The first facility, G1, was officially inaugurated this week and has been designed to achieve a peak capacity of around 0.5 million units per day. Equipped with advanced assembly lines, high-performance testing systems, and a sophisticated Manufacturing Execution System (MES) for automation and traceability, the G1 plant will handle the entire chip lifecycle, from assembly and packaging to testing and post-test processes. The site also includes in-house laboratories for reliability testing and failure analysis, reflecting its commitment to world-class quality and precision. CG Semi is currently pursuing ISO 9001 and IATF 16949 certifications to align with global industry standards.
Following its launch, G1 will begin customer qualification runs as a precursor to ramping up full-scale production. Parallelly, work is already underway on the second facility, G2, located just three kilometers away. Once completed by the end of 2026, the G2 facility is expected to provide high-volume production capacity, capable of processing approximately 14.5 million units per day. This expansion will significantly boost India’s manufacturing capacity at a time of rising global semiconductor demand.
In addition to building infrastructure, CG Semi has placed strong emphasis on developing a skilled workforce to operate these advanced facilities. Engineers, operators, and technicians have undergone extensive training in Malaysia to ensure they are prepared for the intricacies of large-scale semiconductor packaging and testing. The company’s approach integrates both immediate operational readiness and long-term skill development, contributing to India’s pool of semiconductor professionals and supporting broader knowledge transfer within the sector.
From an economic standpoint, the dual OSAT facilities are projected to create more than 5,000 direct and indirect jobs, fostering local employment and driving regional development in Gujarat. By embedding itself as a major player in the global supply chain, CG Semi’s expansion also promises to elevate India’s status as a hub for semiconductor innovation and manufacturing.
Speaking at the inauguration, Vellayan Subbiah, Chairman of CG Power, emphasized the national importance of the initiative: “This facility represents a national milestone in our journey toward semiconductor sovereignty. It showcases how collaboration between the government and industry can achieve great scale and capital investment, ultimately contributing to India’s technological independence.”
As a joint venture between CG Power, Renesas Electronics, and Stars Microelectronics, CG Semi is uniquely positioned to offer complete assembly and testing solutions for applications across automotive, defense, infrastructure, and IoT. With its headquarters in Sanand, the company is set to play a pivotal role in advancing India’s self-reliance in semiconductors and integrating the nation more deeply into the global technology ecosystem.
