CG Semi Starts Commercial Chip Production at Sanand OSAT Facility
09 July 2026: Prime Minister Narendra Modi has inaugurated commercial production at CG Semi’s G1 outsourced semiconductor assembly and test facility in Sanand, Gujarat, marking another step in India’s effort to build a domestic semiconductor supply chain.
CG Semi (P) Ltd. is a joint venture between CG Power and Industrial Solutions, Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand. The company said commercial production has begun at the Sanand G1 OSAT facility, which has a peak capacity of up to 300 million units a year.
At a Glance ….
– Facility: CG Semi G1 OSAT plant
– Location: Sanand, Gujarat
– Investment: More than INR 7,600 crore over five years for G1 and G2
– Partners: CG Power, Renesas Electronics and Stars Microelectronics
– G1 capacity: Up to 300 million units a year
– Government support: 50 percent fiscal support on eligible capex under India Semiconductor Mission
The G1 unit was inaugurated in August 2025 and has since gone through equipment installation, process stabilisation, workforce training, customer qualification and quality readiness. CG Semi said the plant is now positioned to serve customers in India and global markets.
During the July 4 launch, the Prime Minister was presented with the first batch of chips manufactured at the facility. Reports said the chips are expected to be exported to Japan, with wider export markets including the United States and Europe also being targeted.
The Sanand project was approved by the Union Cabinet in February 2024 under India’s semiconductor scheme. A Fiscal Support Agreement was signed in January 2025 between India Semiconductor Mission, CG Power and CG Semi for the INR 7,600 crore project. The project receives 50 percent fiscal support on eligible capital expenditure.
CG Power holds 92.3% in the joint venture, while Renesas holds around 6.8% and Stars Microelectronics about 0.9%. Renesas is expected to provide semiconductor technology and expertise, while Stars Microelectronics brings OSAT experience and training support.
CG Semi is developing two facilities in Sanand, G1 and G2. The second unit is under development and is expected to expand capacity once commissioned. Earlier project disclosures said the combined capacity of the two facilities is planned to ramp up to 15 million units per day.
The launch follows the start of operations at Micron Technology’s ATMP facility and Kaynes Semicon’s OSAT facility, strengthening Gujarat’s position in India’s semiconductor packaging ecosystem.
For CG Power, the project marks a shift beyond its traditional industrial and power equipment base into electronics and semiconductor manufacturing. For India, it adds local capacity in chip assembly and testing, a critical stage between chip design and finished electronic products.
