CG Semi Private Ltd. has started commercial production at its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, marking a key milestone in India’s push to expand its semiconductor manufacturing capabilities.
The company, a joint venture between CG Power and Industrial Solutions Ltd., Japan’s Renesas Electronics Corporation and Thailand-based Stars Microelectronics, said the G1 facility has completed equipment installation, process stabilisation, workforce training and customer qualification, paving the way for commercial operations.
The facility, inaugurated in August 2025, has an annual production capacity of up to 300 million semiconductor units and is expected to serve customers in India and overseas.
The announcement was made at an event attended by India’s PM Narendra Modi, Bhupendra Patel and Ashwini Vaishnaw.
The start of production comes as India accelerates efforts to establish a domestic semiconductor ecosystem through government-backed incentives aimed at reducing dependence on imported chips and attracting global investments in electronics manufacturing.
CG Semi said it plans to invest more than ₹7,600 crore ($890 million) over five years to build two OSAT facilities in Gujarat with support from the central and state governments. While the G1 plant is now operational, a second facility, G2, remains under development and is expected to expand the company’s production capacity once completed.
OSAT facilities perform the assembly, packaging and testing of semiconductor chips before they are supplied to electronics manufacturers, making them a critical part of the global semiconductor supply chain.
The company said it has recruited experienced semiconductor professionals and invested in training Indian engineers, technicians and operators to support high-volume manufacturing operations. It added that the G1 facility is equipped with manufacturing traceability systems, process controls and in-house reliability and failure analysis capabilities.
“Today, this first shipment speaks louder than any words. It reflects the enormous belief behind these small chips and the combined effort of a remarkable team,” CG Power Chairman Vellayan Subbiah said in a statement.
The commissioning of the facility adds to a series of semiconductor manufacturing projects announced in India as the country seeks to position itself as a global hub for chip production, assembly and advanced electronics manufacturing.
