CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Limited and part of the Murugappa Group, has opened an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The company is investing over INR 76 billion (approximately USD 870 million) over five years to establish two facilities, G1 and G2, in collaboration with Renesas and Stars Microelectronics.
The G1 facility, inaugurated on 28 August 2025, has a peak capacity of around 0.5 million units per day. It is designed to provide end-to-end chip assembly, packaging, testing, and post-test services. The facility includes high-yield equipment, a Manufacturing Execution System for automation and traceability, and in-house laboratories for reliability and failure analysis. It is currently in the process of ISO 9001 and IATF 16949 certification. Customer qualification runs will begin after the inauguration, with commercial production scheduled to start in 2026.
The G2 facility, located about 3 km from G1, is under construction and is expected to be completed by the end of 2026. Once operational, G2 will have a capacity of about 14.5 million units per day. Together, the two facilities are projected to create more than 5,000 direct and indirect jobs.
CG Semi has formed a team of industry professionals with a combined experience of over 1,000 years in semiconductors. The company has also initiated workforce training by sending engineers, operators, and technicians to Malaysia for three months of hands-on experience, aiming to prepare staff for high-volume operations.
CG Semi is a joint venture between CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics. Headquartered in Sanand, Gujarat, the company provides semiconductor assembly and test solutions for a range of packages including SOIC, QFP, QFN, BGA, FCQFN, and FCBGA. Its services cater to industries such as automotive, defence, infrastructure, and IoT.
