Prime Minister Modi inaugurated CG Semi's outsourced semiconductor assembly and test facility in Sanand, Gujarat on July 4, 2026, a landmark for India's chip ecosystem. The ₹7,600 crore plant, backed by CG Power, Japan's Renesas and Thailand's Stars Microelectronics, starts with 200 million chips per year capacity and scales to 5 billion, serving automotive, industrial and consumer electronics packaging markets.
Semicon Hunt -> manufacturing -> CG Semi
2026-07-09
Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on July 4, 2026, commissioning India's third major semiconductor manufacturing unit under the India Semiconductor Mission. The plant is operated by CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Ltd, part of the Murugappa Group. The opening marks the first time India has an integrated, end-to-end semiconductor packaging and testing facility operating at commercial scale, a milestone Indian policymakers and industry stakeholders have been working toward for several years.
CG Semi is structured as a joint venture among CG Power and Industrial Solutions Ltd, which holds a 92.3 percent stake, Japan's Renesas Electronics America with roughly 6.8 percent, and Thailand's Stars Microelectronics with about 0.9 percent. The total investment stands at ₹7,600 crore, or approximately $870 million, funded through a combination of government subsidies, equity, and project financing. Renesas Electronics brings deep expertise in power and automotive semiconductors and will supply chip design know-how and global customer relationships to the venture, giving CG Semi a credible pipeline from day one.
The G1 unit is starting with an annual capacity to package around 200 million chips, with plans to scale to 500 million chips per year in a near-term phase. Once fully ramped across all planned units, the facility is designed to produce up to 5 billion semiconductor chips annually, making it one of the largest OSAT plants in South Asia. Target applications span automotive electronic control units, power management ICs, industrial sensors, and consumer electronics, reflecting the diverse customer base that Renesas brings to the partnership.
Prime Minister Modi called the CG Semi plant the next step in India's electronics revolution, emphasizing the facility's role in reducing dependence on imported packaged chips and strengthening the back-end of the semiconductor supply chain. India Semiconductor Mission officials noted the plant joins Micron's Sanand ATMP facility and Kaynes Semicon's Sanand OSAT plant as the third unit to reach commercial production in the current mission cycle, ahead of additional units from SiCSem, 3D Glass Solutions, ASIP Technologies and Continental Device India Ltd that are still in development.
Speaking at the inauguration, Modi said India is now moving from consuming chips to making them, and framed the CG Semi facility as proof that large-scale semiconductor manufacturing can be built in India through the right policy, technology partnerships and capital commitments. Chief Minister Bhupendra Patel welcomed the facility as an anchor investment for Gujarat's semiconductor ambitions and said the state government will continue to offer competitive infrastructure and incentive packages to attract further semiconductor and electronics investments into the GIDC Sanand industrial area.
With the G1 unit now operational, CG Semi is expected to focus on customer qualifications, process certifications for automotive-grade packaging, and ramping to 500 million units per year before commencing work on additional production lines. Renesas Electronics has indicated that some of its own IC products may be packaged at the Sanand facility, providing a baseline demand signal while the plant works to diversify its customer base across the Indian and global electronics supply chain.
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