CG Power Opens ₹7,600 Crore OSAT Facility in Gujarat

29 Aug 2025 , 12:44 PM

Engineering major CG Power and Industrial Solutions Ltd. announced on Thursday that its subsidiary, CG Semi Private Ltd., has inaugurated its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, marking a significant step in India’s semiconductor journey.

With this launch, CG Semi Private becomes one of the country’s first full-service OSAT providers, offering packaging and testing solutions across both traditional and advanced technologies. The company said the facility will not only strengthen India’s semiconductor ecosystem but also support the nation’s push for self-reliance while catering to global markets.

The project has been developed with support from the central and state governments and in collaboration with Renesas and Stars Microelectronics. CG Semi Private is investing over ₹7,600 crore (around $870 million) across five years to establish two facilities G1 and G2 in Sanand.

The G1 facility, inaugurated today, has a peak capacity of 0.5 million units per day and is designed for end-to-end chip assembly, packaging, testing, and post-test services. It features high-yield equipment, a modern manufacturing execution system (MES) for level 1 automation and traceability, along with in-house labs for reliability and failure analysis. The facility is undergoing ISO 9001 and IATF 16949 certifications, with customer qualification runs scheduled to begin shortly. Commercial production is expected to commence in 2026, as per commitments to ISM.

The second unit, G2 located 3 km away from G1 is under construction and slated for completion by the end of 2026. Once operational, it is expected to scale capacity up to 14.5 million units per day. Together, the two facilities are projected to create more than 5,000 direct and indirect jobs.

Calling the inauguration a “national milestone,” Vellayan Subbiah, Chairman of CG Power, said, “It shows how the government and industry can come together with conviction, capital, and scale to achieve the vision set by our honourable prime minister. Every chip we make here is a step toward India’s technological sovereignty.”

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