CG Semi Starts Commercial Production at Sanand Semiconductor Facility

What happened: 

CG Semi has officially entered into mass production at its semiconductor assembly and test (OSAT) plant in Sanand, Gujarat. The development represents the company’s move from setup and qualification to full-scale manufacturing. The facility is slated to have a capacity of 300 million units per annum and will cater to both domestic as well as international customers when it is inaugurated in August 2025. The company is a joint venture of CG Power, Industrial Solutions, Japan’s Renesas Electronics and Thailand’s Stars Microelectronics.

Why it matters:

India’s main thrust for semiconductors has been the lure of investments and manufacturing facilities. It is a reminder that these projects are starting to enter commercial production after the beginning was announced. For CG Semi, it means the facility is now fully equipped to produce, package and test semiconductor products at scale following its installation, training of personnel, process testing and customer qualification activities.

Industry context:

The critical manufacturing phases in the semiconductor value chain, the assembly and testing have been traditionally outsourced to foreign facilities in India. Aimed at bolstering the local expertise and further propelling the government’s vision of a self-reliant semiconductor ecosystem, such initiatives are poised to enhance the country’s ability.

CG Semi has invested over ₹7,600 crore in setting up two OSAT plants in Gujarat. The larger G2 facility, which will augment the company’s manufacturing presence further, is still under way while the G1 unit is now in production.

The company has also been investing in training semiconductor engineers and technicians and those experts say it will be crucial if the chip manufacturing ecosystem is to continue to expand in India.