CG Semi Private Limited, a Murugappa Group subsidiary partnered with Renesas Electronics and Stars Microelectronics, has launched India's first end-to-end OSAT facility in Sanand, Gujarat. The ₹7,600 crore two-facility investment (G1 now operational at 500,000 chips/day; G2 under construction targeting 14.5 million chips/day) positions Sanand as India's premier semiconductor packaging cluster generating 5,000+ jobs.
Semicon Hunt -> manufacturing -> CG Semi
2026-06-05
CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions (Murugappa Group), has launched India's first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. With a total planned investment of ₹7,600 crore across two facilities over five years, CG Semi is one of the most significant semiconductor packaging investments in India, developed in partnership with Japan's Renesas Electronics and Thailand's Stars Microelectronics.
The G1 facility, inaugurated in August 2025, began commercial shipments in 2026. Equipped with high-yield assembly equipment, a Manufacturing Execution System for Level 1 automation and traceability, and in-house labs for reliability and failure analysis, G1 processes over 500,000 chips per day. CG Semi trained hundreds of Indian engineers at manufacturing facilities in Malaysia to prepare them for the highly specialised work of chip assembly and testing.
A second facility, G2, is under construction approximately 3 km from G1 and is expected to become operational by end-2026. At full ramp, G2 will scale to approximately 14.5 million chips per day — among the largest OSAT capacities in South Asia. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs and position Sanand as India's premier semiconductor packaging cluster alongside Micron's ATMP and Kaynes Semicon's OSAT.
The joint venture brings Renesas' deep expertise in automotive and industrial semiconductors, Stars Microelectronics' OSAT operational know-how, and CG Power's established base in Indian power electronics manufacturing. This combination is designed to address India's growing demand for domestically packaged chips in automotive, industrial, and EV applications — reducing dependence on overseas packaging facilities in Taiwan, Malaysia, and South Korea.
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