CG Power Subsidiary CG Semi Starts Commercial Production at Sanand OSAT Facility

CG Power and Industrial Solutions Limited's subsidiary, CG Semi Private Limited, has announced the commencement of commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. This development is a key step for CG Semi's operational capabilities and aligns with broader efforts in India's semiconductor manufacturing landscape. The launch was attended by notable dignitaries, underscoring the project's significance. The G1 facility, inaugurated in August 2025, has since focused on operational readiness and customer qualification, culminating in this milestone.

Key highlights

• CG Semi, a joint venture of CG Power and Industrial Solutions Ltd., Renesas Electronics Corporation, and Stars Microelectronics, initiated commercial production at its G1 OSAT facility in Sanand, Gujarat.
• The G1 facility is designed for a peak capacity of up to 300 million units per year.
• Since its inauguration in August 2025, the facility completed equipment installation, process stabilization, workforce training, customer qualification, and quality readiness.
• CG Semi is investing over ₹7,600 crore across five years to develop two OSAT facilities (G1 and G2), with G1 now commercially operational and G2 under development.
• The company aims to provide turnkey solutions for semiconductor assembly and test across traditional and advanced packages, serving sectors such as automotive, defence, industrial, and IoT.

What drove it

The commencement of commercial production at the G1 facility followed a structured progression since its inauguration in August 2025. This phase included critical steps such as equipment installation, process stabilization, workforce training, customer qualification, and achieving quality readiness, as indicated in the press release. The initiative also benefits from central and state government support.

Context

CG Semi was established as one of India's first dedicated Outsourced Semiconductor Assembly and Test companies. The G1 facility is the first of two planned OSAT facilities, with the second, G2, currently under development and intended to significantly scale production capacity once operational.

Why it matters

The start of commercial production at the G1 OSAT facility represents an operational milestone for CG Semi and, by extension, CG Power and Industrial Solutions Limited, marking the transition from development to active manufacturing. This facility is positioned to serve global customers, indicating its potential to contribute to the semiconductor supply chain across various critical sectors. The company's investment in training Indian engineers and technicians for high-volume OSAT operations also contributes to strengthening India’s domestic semiconductor talent base.

What to watch

Future updates may provide details on the ramp-up of production at the G1 facility and the progress of the G2 facility's development. The company's ability to serve its target markets will be observed.

Source: Exchange filing