The Murugappa Group’s subsidiary CG Semi, which is a division of CG Power and Industrial Solutions Limited, has announced the opening of its first Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat. As a result of this introduction, CG Semi is now among the first full-service OSAT suppliers in India, providing solutions for both conventional and cutting-edge packaging technologies.
This is a significant step toward enhancing India’s semiconductor capabilities and advancing the nation’s objective of independence while simultaneously catering to international markets.
In partnership with Renesas and Stars Microelectronics, CG Semi is investing more than INR 7,600 crore (~USD 870 million) over five years to build two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat, with the backing of the federal and state governments.
Today marks the opening of the G1 plant, which will run at a maximum capacity of about 0.5 million units each day. It can manage testing, packaging, post-test services, and end-to-end chip assembly. High-yield machinery, a state-of-the-art Manufacturing Execution System (MES) for Level 1 automation and traceability, and internal labs for failure investigation and reliability are all elements of the facility.
It is presently being certified by IATF 16949 and ISO 9001. After the inauguration, customer qualifying runs for a variety of packages will start. As promised to ISM, CG Semi is expected to start commercial production in 2026.
The G2 facility, which is now under development and should be finished by the end of 2026, is situated roughly 3 km from G1. G2 will grow to a daily capacity of about 14.5 million units once it is up and running. In the upcoming years, it is anticipated that the two facilities would create more than 5,000 direct and indirect jobs.
A group of seasoned professionals with over 1,000 years of combined semiconductor experience have been assembled by CG Semi to construct and run the OSAT. By sending Indian engineers, operators, and technicians to Malaysia for three months of practical training, the company has also achieved great progress in developing its workforce. This ensures a quicker learning curve and preparedness for high-volume operations.
With this launch, CG Semi is well-positioned to contribute significantly to the advancement of India’s Atmanirbhar Bharat vision and the development of the country’s semiconductor industry.
Leadership Comments
Speaking at the inauguration, Mr. Vellayan Subbiah, Chairman, CG Power, said, “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty.”
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