India-based CG Semi has begun commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
The chip assembly and testing site is operated by CG Semi, a joint venture (JV) involving CG Power and Industrial Solutions of the Murugappa Group, Renesas Electronics, and Stars Microelectronics.
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The official inauguration of the facility took place in the presence of the Prime Minister of India, Narendra Modi, as well as Gujarat Chief Minister Bhupendra Patel and the Union Minister for Railways, Information and Broadcasting and Electronics and Information Technology, Ashwini Vaishnaw.
The G1 plant, which was launched in August 2025, has a stated peak capacity of up to 300 million units a year.
Over the last few months, the facility has moved through several implementation stages including equipment installation, workforce training, process stabilisation, customer qualification, and quality preparations.
With the start of regular production, CG Semi states it is now ready to offer OSAT services to customers internationally.
CG Semi’s investments in the Sanand region total over Rs76bn ($796m) over five years, spread across the current G1 site and a second facility called G2, which remains under development.
The collaboration between CG Power and its JV partners, along with government support, underpins the expansion plan.
While G1 is now operational, G2 is expected to provide further production capacity once complete.
Prime Minister Modi said: “I congratulate the entire team, the state government, and the whole country for building this step by step, brick by brick, and chip by chip.”
He highlighted the project’s strategic importance for India’s ambitions to become a global hub for advanced technology and manufacturing, as well as the integrated efforts between Indian, Japanese, and Thai partners.
CG Power chairman Vellayan Subbiah said: “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.”
According to CG Semi, the G1 facility operates with advanced production systems and in-house reliability and failure analysis labs.
The company reports that its project aims to strengthen India’s chipmaking workforce by training domestic engineers, operators, and technicians in OSAT processes.
