CG Semi Prepares for Commercial Launch at Sanand Semiconductor Facility
Following the inauguration of Micron Technology's first large-scale ATMP facility in Sanand, CG Semi Private Limited is advancing toward the commencement of commercial operations. This development was highlighted by G C Chaturvedi, Chairman of CG Semi, during his address at the Gujarat SemiConnect Conference 2026.
Timeline and Production Details
CG Semi completed its initial Sanand plant in August 2025 and is now on track to initiate commercial production later this year. Sources familiar with the project have confirmed that the Outsourced Semiconductor Assembly and Test (OSAT) plant will begin its commercial phase within the next month and a half.
The company has outlined plans for a second facility, scheduled for completion in 2027. This expansion will significantly boost capacity, with the combined output expected to reach approximately 4 billion chips annually. These chips will primarily serve the automotive industry, industrial infrastructure, and Internet of Things (IoT) applications.
Investment and Partnership Structure
CG Semi Private Limited operates as a joint venture subsidiary of CG Power and Industrial Solutions. It was established to develop the OSAT facility in Sanand through strategic partnerships with Japan's Renesas Electronics Corporation and Thailand's Stars Microelectronics. The total investment for setting up two advanced packaging and testing facilities, designated G1 and G2, exceeds Rs 7,600 crore over several years.
Building a Comprehensive Semiconductor Ecosystem
In his remarks, Chaturvedi emphasized the need to accelerate the development of a robust semiconductor ecosystem in India. He stated, "While anchor players started laying strong foundations, it is imperative that we accelerate the development of a comprehensive ecosystem encompassing suppliers of raw material and equipment, academic institutions, training centres and R&D hubs."
He expressed confidence that the forthcoming ISM 2.0 policy will address existing gaps, positioning India to emerge as a semiconductor superpower within the next decade. This policy is expected to foster collaboration across various sectors, enhancing India's global competitiveness in chip manufacturing.
The progress at CG Semi's Sanand facility marks a significant step forward in India's semiconductor ambitions, aligning with broader national initiatives to strengthen the technology and manufacturing sectors.
