- Prime Minister Narendra Modi flags off commercial production at Gujarat’s first OSAT facility, marking a defining leap in India’s semiconductor self-reliance mission
- ₹7,600-crore investment to build twin chip-packaging facilities positions Sanand as a global semiconductor manufacturing destination
- CG Semi says first commercial shipment signals India’s readiness to serve global markets with world-class quality, talent and advanced chip packaging capabilities
NE BUSINESS BUREAU
SANAND, JULY 4
India’s semiconductor ambitions crossed another historic milestone on Saturday as CG Semi Private Limited (CG Semi) commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, reinforcing the country’s emergence as a serious global player in semiconductor manufacturing.
The landmark launch, witnessed by Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel and Union Minister Ashwini Vaishnaw, marks one of the earliest commercial semiconductor manufacturing operations under India’s ambitious Semicon India programme.
The commencement of commercial production transforms the Sanand facility from a strategic investment into a fully operational manufacturing unit capable of supplying semiconductor packaging and testing solutions to customers across international markets.
Established as a joint venture between CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand, CG Semi is spearheading one of India’s most significant private-sector semiconductor investments.
The G1 facility, inaugurated in August 2025, has an annual peak production capacity of 300 million semiconductor units. Over the past year, the company has successfully completed equipment installation, process stabilisation, workforce training, customer qualification and stringent quality validation before commencing commercial operations.
Backed by strong support from both the Central and Gujarat governments, CG Semi is investing more than ₹7,600 crore over five years to establish two state-of-the-art OSAT facilities—G1 and G2.
While G1 has now entered commercial production, construction of the larger G2 facility is progressing and is expected to substantially expand the company’s manufacturing capacity, further strengthening India’s semiconductor value chain.
Recognising that semiconductor manufacturing is driven as much by talent as technology, CG Semi has built a specialised workforce comprising experienced semiconductor professionals while investing heavily in training Indian engineers, operators and technicians for high-volume chip assembly, packaging and testing operations.
The company said the G1 facility has been designed around global manufacturing standards with advanced process controls, end-to-end manufacturing traceability, high-yield production systems and integrated reliability and failure analysis capabilities to ensure world-class quality.
Speaking on the occasion, 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.”
Industry experts view the commercial rollout as a pivotal moment in India’s semiconductor ecosystem, signalling the country’s transition from policy announcements to large-scale manufacturing while strengthening supply chain resilience and reducing dependence on overseas chip packaging facilities.
With commercial production now underway, CG Semi’s Sanand campus is expected to play a vital role in supporting India’s fast-growing electronics, automotive, industrial automation, telecommunications and artificial intelligence sectors, while enhancing the country’s competitiveness in the global semiconductor landscape.
