CG Semi Commences Commercial Production at G1 OSAT Facility in Sanand, Boosting India's Semiconductor Manufacturing Base

CG Semi Commences Commercial Production at G1 OSAT Facility in Sanand, Boosting India's Semiconductor Manufacturing Base​

Sanand, Gujarat: CG Semi Private Limited, a dedicated joint venture, has announced the commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand. The launch represents a significant milestone in advancing India's semiconductor manufacturing ecosystem.

The G1 facility was inaugurated in August 2025. As one of India’s first specialized OSAT companies, CG Semi was established through a collaboration involving CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation, and Stars Microelectronics.

The state-of-the-art G1 facility has a peak capacity rated at up to 300 million units annually. Since its inauguration, the company has ensured complete operational readiness through rigorous equipment installation, process stabilization, workforce training, customer qualification, and quality assurance preparation. With commercial production now underway, CG Semi is positioned globally to serve diverse clientele.

Investment and Future Expansion​

CG Semi is committed to substantial growth in the Indian semiconductor market. The venture has allocated over ₹7,600 crore investment across five years for the development of two OSAT facilities: G1 and G2. While commercial operations are now live at G1, the second facility, G2, remains under development, promising further scalability once operational.

The company has placed a strong emphasis on talent development within India. CG Semi has invested in training local engineers, operators, and technicians to support high volume OSAT operations, thereby strengthening the domestic semiconductor workforce.

Operational Excellence and Market Reach​

Quality is central to the operating model at CG Semi. The G1 facility integrates robust process controls, manufacturing traceability, and in-house capabilities for reliability and failure analysis, ensuring high-yield production standards are maintained from day one.

CG Semi provides turnkey solutions for both traditional and advanced semiconductor packages and serves critical sectors including automotive, defence, infrastructure, industrial, and IoT.

Mr. Vellayan Subbiah, Chairman of CG Power, commented on the achievement, stating, "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."

About the Murugappa Group​

CG Semi is part of the Murugappa Group, a conglomerate with 125 years of presence across India and globally. The group maintains diverse business interests in agriculture, engineering, financial services, and more. The Murugappa Group holds INR 902 billion (90,178 crore) as part of its portfolio and employs a workforce exceeding 94,041 employees.

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CGPOWER Stock Price Movement​

CG Power and Industrial Solutions Limited shares tumbled on Friday, shedding ₹65.00 or 6.78% to close at ₹892.55. The stock closed amid heavy trading, with 24.73 million shares changing hands during the session.