CG Power and Industrial Solutions is scaling its G2 OSAT production line in Sanand, Gujarat to 14.5 million chip units per day, building on the operational G1 pilot line at 500,000 units per day developed in partnership with Renesas Electronics and Stars Microelectronics, cementing CG Power as one of India's fastest-growing semiconductor packaging companies under the ISM incentive framework.
Semicon Hunt -> manufacturing -> CG Power
2026-09-01
CG Power and Industrial Solutions, the Mumbai-headquartered diversified engineering and industrial equipment company, is executing a dramatic scale-up of its semiconductor OSAT facility at Sanand, Gujarat, with the G2 production line targeting a capacity of 14.5 million chip units per day once fully ramped. This represents a 29-fold increase over the G1 pilot line's capacity of 500,000 units per day and positions CG Power as one of India's highest-volume semiconductor packaging operations, capable of serving large-scale chip supply chain requirements in the automotive, consumer electronics, and industrial sectors.
CG Power's OSAT venture is structured as a joint venture with Renesas Electronics of Japan and Stars Microelectronics of Thailand, providing access to advanced packaging technology and industry-standard quality systems that CG Power could not have developed independently on a commercially viable timeline. Renesas, a leading automotive and industrial microcontroller company, brings its process knowledge and quality standards for automotive-grade chip packaging, a particularly demanding application that requires zero-defect manufacturing under extreme temperature and vibration conditions. Stars Microelectronics contributes OSAT operational expertise accumulated over decades of serving global semiconductor customers from its Thailand facilities. The three-way partnership exemplifies the technology transfer model that ISM intended when it structured its OSAT incentives to require or encourage partnerships with established international OSAT players.
The G1 pilot line at CG Power's Sanand facility served as a technology qualification and workforce development platform, allowing the company to establish manufacturing processes, train an operations engineering team, achieve quality certifications from automotive and industrial customers, and demonstrate the operational viability of the Sanand location for semiconductor packaging. With G1 certified and in commercial production, the G2 expansion can proceed with substantially reduced technology and workforce risk compared to a greenfield start. The G2 line is also expected to incorporate more automated handling, vision inspection, and process control systems than G1, reflecting improvements in both the company's manufacturing sophistication and the availability of supporting equipment and integration services in India's growing semiconductor services ecosystem.
A capacity of 14.5 million chip units per day on the G2 line places CG Power among the mid-tier global OSAT providers in terms of volume capability, comparable to established players in Malaysia and Thailand. This volume matters because global semiconductor companies sourcing OSAT services typically require minimum volume commitments from their packaging partners to justify qualification costs, supply chain integration, and logistics arrangements. At 14.5 million units per day, CG Power is large enough to serve as a primary OSAT vendor for mid-scale chip programs from automotive, industrial, and consumer electronics companies, particularly those that have identified India supply chain presence as a strategic requirement for their own customers or government procurement alignment purposes.
The CG Power G2 ramp is part of a broader maturation of India's OSAT and packaging sector that is gaining momentum through 2026. Together with Micron's Sanand ATMP, Kaynes Semicon in Mysuru, and the pipeline of new OSAT facilities expected to be approved under Semicon 2.0, India is building a packaging sector of meaningful commercial scale. For global chip companies looking to diversify packaging away from Taiwan and Southeast Asian concentration, India is increasingly presenting a credible and accessible alternative, particularly for companies with large India sales volumes that want to align domestic procurement with their customer-facing commitments to India supply chain development. The success of CG Power's G2 ramp is expected to validate India's commercial OSAT viability and accelerate the decisions of other global semiconductor companies considering their own India packaging investments.
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