CG Semi's ₹7,600 Crore OSAT Facility Powers India's Chip Ambitions

CG Power and Industrial Solutions' subsidiary, CG Semi, has inaugurated its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, marking a major milestone in India’s semiconductor journey.

With this launch, CG Semi becomes one of the country’s first full-service OSAT providers, offering a complete suite of solutions across traditional and advanced packaging technologies. Backed by the Central and state governments, and in partnership with Renesas and Stars Microelectronics, the company is investing over ₹7,600 crore (USD 870 million) over five years to establish two advanced facilities—G1 and G2.

The G1 facility, inaugurated on 28 August 2025, is equipped with cutting-edge technology for chip assembly, packaging, testing, and post-test services, supported by high-yield equipment and MES automation. It will have a peak capacity of 0.5 million units per day, with commercial production scheduled to begin in 2026.

Located three kilometers away, the upcoming G2 facility will significantly scale operations to a peak capacity of 14.5 million units per day. Combined, both facilities are expected to create over 5,000 jobs and bolster India’s ambitions for semiconductor self-reliance while serving both domestic and global markets.

News by Rahul Yelligetti.