CG Power and Industrial Solutions’ subsidiary CG Semi has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.

“With this launch, CG Semi becomes one of India’s first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies,” the company said. Supported by Central and state governments, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore (USD 870 million) over five years to build two facilities, G1 and G2.

The G1 facility, inaugurated on 28 August, 2025, has a peak capacity of 0.5 million units per day and features end-to-end chip assembly, packaging, testing, and post-test services with high-yield equipment and MES automation. Commercial production is set for 2026.

The G2 facility, three km away, will scale to 14.5 million units per day and, together with G1, generate over 5,000 employment opportunities. The initiative strengthens India’s semiconductor capabilities and supports the nation’s goal of self-reliance while serving global markets