CG Power's OSAT Unit Targets Chip Production by Mid-2026

CG Power and Industrial Solutions' outsourced semiconductor assembly and test (OSAT) unit in Gujarat is to begin chip production by the end of the current financial year. The facility is part of a joint venture with Renesas Electronics, which holds a minority stake. The OSAT unit is being set up with an investment of $222 million in Gujarat's Sanand. Thailand-based Stars Microelectronics is also a minority shareholder. 

Renesas is contributing chip packaging technology to the plant. Initial chip packages are expected later this year, with a production ramp-up planned in 2025.

Partnership Structure

The OSAT unit is located in Gujarat and is part of an arrangement between CG Power, Renesas Electronics, and Stars Microelectronics. The project is aimed at providing semiconductor packaging and testing capabilities, with Renesas offering the technical expertise required to operate the unit.

Government Partnerships 

Renesas has signed agreements with the Ministry of Electronics and Information Technology (MeitY) and the Centre for Development of Advanced Computing (C-DAC) under the Chips to Startup (C2S) programme. This includes collaboration with over 250 academic institutions and about 15 startups. 

R&D Expansion in India

Reports suggest Renesas has opened two new research and development centres in Noida and Bangalore. The company plans to add two more centres, one in Bangalore and another in Hyderabad. As of now, the Indian workforce includes about 700 engineers. Renesas plans to increase this number to 1,000 by the end of the year. In Noida, the team has started work on designing 3-nanometer chips.

Read more: CG Power Launches Axiro Semiconductor Design Centre in Bengaluru with $36 Million Investment

Revenue and Local Contribution

Renesas is working on increasing its India-based operations, aiming for the region to contribute over 10% of its global revenue by 2030. Indian R&D teams are involved in developing products for both local and global use.

Market Update 

As of 10:26 AM on May 14, 2025,  CG Power and Industrial Solutions share price was trading at ₹668.45, a 2.50% increase, with a 4.08% decline over the past six months and a 9.54% increase over the past year.

Conclusion

Chip production at the CG Power-Renesas OSAT facility is expected to begin by March 2026, alongside continued expansion of Renesas’ R&D footprint and academic partnerships in India.

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