CG Semi, a subsidiary of Murugappa Group company CG Power and Industrial Solutions, has announced the launch of its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The facility will cater to a number of sectors with the automotive industry being a prime user, along with IoT, industrial, infrastructure and 5G technology.
CG Semi is a joint venture between CG Power, Renesas Electronics Corporation of Japan and Stars Microelectronics of Thailand. Headquartered in Sanand, CG Semi provides comprehensive turnkey solutions for semiconductor assembly and test, covering advanced and legacy packages such as SOIC, QFP, QFN, BGA, FCQFN, and FCBGA. The company will cater to key sectors such as automotive,
The CG Semi plant was inaugurated yesterday by Union Minister of Electronics and Information Technology, Ashwini Vaishnaw along with Chief Minister of Gujarat Bhupendra Patel.
Will cater to more chips per SDV, reduce import dependence
Over the past six-odd years, India Auto Inc, in sync with the global automobile industry, is speedily making the transition to software-defined vehicles which rely on different types of semiconductors (chips) to deliver speedy processing capability for multiple operations including power steering, braking systems, air-conditioning, tyre pressure monitoring, infotainment and in-vehicle communications, safety-focused ADAS technologies and also vehicle performance. The CG Semi facility will produce chips which will find application in automotive safety systems, control units and vehicle electronics.
Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore (US$ 870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat, which is a growing automobile manufacturing hub which houses the Tata Motors Electric Mobility plant (which it acquired from Ford in January 2023).
Just about 100km away from Sanand lies Hansalpur from where, on August 26, Maruti Suzuki India began dispatch of the e-Vitara, Suzuki’s first global strategic BEV, which is produced at the Suzuki Motor Gujarat plant and will be shipped from the Pipavav port in Gujarat to markets worldwide, including Europe and Japan. Electric vehicles, typically, use as many if not more semiconductors as ICE vehicles.
In his response to the news of the unveiling of the CG Semi chip plant, Vinnie Mehta, Director General of Automotive Component Manufacturers Association of India (ACMA), said: “Semiconductor manufacturing in India is the need of the hour. For the automotive component industry, it will strengthen supply chains, reduce import dependence, create resilience and enable faster adoption of advanced technologies in vehicles. In the long term, such initiatives will help enhance India’s global competitiveness in mobility.”
14.5 million chips per day at peak capacity
CG Semi’s G1 facility will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. It is currently undergoing ISO 9001 and IATF 16949 certification and customer qualification runs across various packages will begin soon. The company is on track to commence commercial production in CY2026.
Located about 3km from G1, the G2 facility is under construction and expected to be completed by the end of CY2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day.
Speaking at the inauguration, Vellayan Subbiah, Chairman, CG Power, said: “This facility represents more than a milestone 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.”