CG Semi Private Limited has begun commercial production at its G1 Outsourced Semiconductor Assembly and Test facility located in Sanand, Gujarat.
The launch marks a significant step forward in India’s ambitions to build a credible domestic semiconductor manufacturing industry.
The event was attended by Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel, and Minister for Electronics and Information Technology Ashwini Vaishnaw.
CG Semi was established as a joint venture between CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation, and Stars Microelectronics.
The G1 facility was first inaugurated in August 2025 and has a peak production capacity of up to 300 million units per year.
Since its inauguration, the plant has progressed through equipment installation, process stabilisation, workforce training, customer qualification, and quality readiness stages.
CG Semi is investing over 7,600 crore rupees across five years to develop two OSAT facilities, known as G1 and G2, backed by central and state government support.
The second facility, G2, remains under development and is expected to significantly expand CG Semi’s overall production capacity once it becomes operational.
The company has invested heavily in training Indian engineers, operators, and technicians to support high-volume semiconductor assembly, packaging, and testing operations.
CG Semi says quality has been central to its operating model from the outset, with the G1 facility equipped with high-yield production systems and in-house reliability and failure analysis capabilities.
Speaking at the launch, Mr. Vellayan Subbiah, Chairman of 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.”
With commercial production now underway, CG Semi says it is positioned to serve semiconductor customers across global markets from its Gujarat base.