Engineering company CG Power and Industrial Solutions Limited announced on Thursday, August 28, that its subsidiary CG Semi Private Limited has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. With this launch, CG Semi Private becomes one of India's first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies.

Investment and Facility Development

CG Semi Private is investing over INR 7,600 crore (approximately USD 870 million) over the next five years to set up two state-of-the-art facilities, G1 and G2, in Sanand, Gujarat. The project has been developed in collaboration with Renesas and Stars Microelectronics and is backed by central and state government support.

The G1 facility was inaugurated on August 28 and is expected to operate at a peak capacity of approximately 0.5 million units per day. The facility is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. It features high-yield equipment, a cutting-edge manufacturing execution system (MES) for level 1 automation and traceability, and in-house labs for reliability and failure analysis.

The G1 facility is currently undergoing ISO 9001 and IATF 16949 certification. Customer qualification runs across various packages will begin following the inauguration, and CG Semi Private is on track to commence commercial production in calendar year 2026, as committed to ISM.

Second Facility and Production Capacity

The G2 facility is located about 3 kilometers from G1 and is currently under construction. The facility is expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the years to come.

The company stated that this marks a significant step in strengthening India's semiconductor capabilities and supporting the country's goal of achieving self-reliance while also serving global markets.

Leadership Statement and Market Impact

Vellayan Subbiah, Chairman of CG Power, commented on the facility launch, stating: “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It demonstrates 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.”

Shares of CG Power and Industrial Solutions Ltd ended at INR 663.65, down by INR 7.55 or 1.12%, on the BSE on August 28. The article was published on August 28, 2025, at 6:18:45 PM IST and was edited by Shoma Bhattacharjee, with reporting by Jomy Jos Pullokaran.

Connect with Decision-makers about the Latest Data Center Facility Projects in India for business Opportunities.

Subscribe to our database on Data Center Facility Projects and Tenders in India to get access to reliable and high-quality insights on upcoming, Under-construction, and completed Data Center Facility Projects across the world or in your desired geographical location.

Our user-friendly platform provides essential details, timely updates, key stakeholder contact information, and business opportunities tailored for engineering companies, industry professionals, investors, and government agencies.