CG Power's Subsidiary Opens India’s First OSAT Facility in Gujarat

CG Semi Private Limited (CG Semi), a subsidiary of CG Power and Industrial Solutions Limited (NSE: CGPOWER) and part of the Murugappa Group, has launched its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

With this milestone, CG Semi becomes one of India’s earliest full-service OSAT providers, offering both traditional and advanced packaging technologies. The initiative supports India’s ambition of self-reliance in semiconductors while serving global demand.

Strategic Investments and Partnerships

Backed by strong support from central and state governments, and in collaboration with Renesas and Stars Microelectronics, CG Semi plans to invest over ₹7,600 crore (~USD 870 million) over five years. The investment will fund the development of two state-of-the-art facilities, G1 and G2, in Sanand.

G1 Facility: A Major Milestone

The G1 facility, inaugurated today, is equipped with advanced technology for chip assembly, packaging, testing, and post-test services. With a peak capacity of 0.5 million units per day, it features high-yield equipment, an advanced Manufacturing Execution System (MES) for automation and traceability, and in-house labs for reliability testing. The unit is undergoing ISO 9001 and IATF 16949 certifications, with customer qualification runs expected soon. Commercial production is set to begin in 2026.

G2 Facility: Scaling Up Production

Located 3 km from G1, the G2 plant is currently under construction and is expected to be completed by the end of 2026. With a capacity of 14.5 million units per day, G2 will significantly scale India’s OSAT capabilities. Together, G1 and G2 are expected to generate over 5,000 direct and indirect jobs.

Workforce Development and Expertise

CG Semi has assembled a team of seasoned semiconductor experts with over 1,000 years of combined experience. To ensure operational readiness, Indian engineers and technicians underwent intensive hands-on training in Malaysia.

Speaking at the inauguration, Mr. Vellayan Subbiah, Chairman, CG Power, said, “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. 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.”

Also Read: L&T Secures Ultra Mega Contract From Adani Power for 6,400MW Thermal Power!

Conclusion

With this launch, CG Semi is positioned to play a pivotal role in India’s Atmanirbhar Bharat vision, accelerating the nation’s semiconductor ambitions while creating a ecosystem that balances domestic needs and global opportunities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.