CG Power Arm Launches India’s First OSAT Facility in Gujarat

CG Power and Industrial Solutions Ltd.’s subsidiary, CG Semi Pvt. Ltd., has inaugurated its first outsourced semiconductor assembly and test (OSAT) facility at Sanand near Ahmedabad. The company will invest ₹76 billion over five years to set up two facilities – G1 and G2 – in partnership with Japan’s Renesas and Thailand’s Stars Microelectronics.

The first plant, G1, spans 75,000 sq. ft. and will operate at peak capacity of nearly 0.5 million units a day, or 150 million units a year. It is equipped for chip assembly, packaging, testing and post-test services, with commercial production expected to start in 2026. Once both plants are complete, they will have over 1 million sq. ft. of built-up area and capacity to handle 4 billion units annually, generating more than 5,000 direct and indirect jobs.

The Sanand facility positions CG Semi as India’s first full-service OSAT provider, a critical bridge between foundry and fabrication units, turning silicon wafers into usable packaged chips for smartphones, automobiles, industrial and IoT applications.

At the launch, chairman Vellayan Subiah urged the industry to support India-made chips and invest in R&D. Union IT minister Ashwini Vaishnav said the plant marks a step forward for India’s semiconductor mission, with 10 projects already approved.

Gujarat currently has four semiconductor plants under construction with investment potential of ₹1.24 trillion, along with three proposed projects worth ₹150 billion. These include Micron’s ATMP unit at Sanand, Tata Electronics and Taiwan’s PSMC fab at Dholera, and Kaynes Semicon’s plant at Sanand.