Operations Commencement
CG Semi Commences Commercial Production at G1 OSAT Facility in Sanand, Gujarat
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CG Power and Industrial Solutions Limited announced that its subsidiary, CG Semi Private Limited, has commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The milestone marks the company’s transition from facility development to commercial operations and strengthens India’s domestic semiconductor manufacturing ecosystem.
PRICE-SENSITIVE TRIGGER
Event: Commercial commencement of production at CG Semi’s G1 OSAT semiconductor facility.
Type: Operations Commencement
Impact: Positive
Immediate Effect:Â CG Semi has begun commercial production at its first semiconductor assembly and testing facility, enabling revenue generation from semiconductor packaging and testing operations while advancing its long-term semiconductor manufacturing expansion plans.
Key Metrics:
- Total Planned Investment: Over ₹7,600 crore (across G1 & G2 facilities over five years)
- Peak Production Capacity (G1):Â Up to 300 million semiconductor units annually
- Facility Location:Â Sanand, Gujarat
- Facilities Planned:Â Two OSAT facilities (G1 and G2)
Highlight:
- Commercial production has commenced at the G1 facility with an annual peak capacity of up to 300 million semiconductor units, supported by a planned investment exceeding ₹7,600 crore over five years.
What Happened ?
CG Power’s subsidiary, CG Semi Private Limited, has officially commenced commercial production at its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility located in Sanand, Gujarat.
The facility, inaugurated in August 2025, has completed equipment installation, process stabilization, workforce training, customer qualification and quality readiness activities, allowing commercial operations to begin.
CG Semi is a joint venture between CG Power and Industrial Solutions Limited, Renesas Electronics Corporation, and Stars Microelectronics, established to provide semiconductor assembly and testing services for automotive, industrial, infrastructure, defence and IoT applications.
The company also confirmed that development of its second facility (G2) is progressing and will significantly expand production capacity upon completion.
Key Details
Commercial Production Highlights:
- Commercial production has commenced at the G1 OSAT facility in Sanand, Gujarat.
- The facility offers semiconductor assembly and testing services across traditional and advanced packages.
- Peak annual production capacity is up to 300 million semiconductor units.
- The facility serves multiple sectors including:
- Automotive
- Defence
- Industrial
- Infrastructure
- Internet of Things (IoT)
- Prior to commercial production, the plant completed:
- Equipment installation
- Process stabilization
- Customer qualification
- Workforce training
- Quality readiness
- G2 OSAT facility remains under development and is expected to materially increase manufacturing capacity after commissioning.
- The project is supported through collaboration between:
- CG Power & Industrial Solutions Ltd.
- Renesas Electronics Corporation
- Stars Microelectronics
Note:
- CG Semi positions itself as one of India’s first dedicated outsourced semiconductor assembly and testing (OSAT) companies, supporting the country’s semiconductor manufacturing ambitions under government-backed initiatives.
Risk Analysis
Summary:
- Commercial production significantly reduces project execution risk; however, scaling production, customer acquisition and successful commissioning of the second facility remain key execution priorities.
Key Risks:
- Semiconductor demand remains cyclical and dependent on global electronics markets.
- Achieving targeted capacity utilization will require continued customer onboarding.
- Successful execution of the G2 facility will be important for long-term scale.
- High capital investments require sustained operational efficiency and production yields.
Worst Case:
- Lower-than-expected utilization, delays in customer qualification, or slower expansion of G2 could postpone expected returns on the large capital investment.
Risk Level: Medium
Company Commentary
- Commercial production has officially commenced at the G1 OSAT facility.
- The facility has completed all major readiness activities including quality validation and customer qualification.
- The company plans to invest more than ₹7,600 crore over five years across G1 and G2 facilities.
- G2 is currently under development and will substantially enhance manufacturing capacity.
- CG Semi aims to strengthen India’s semiconductor ecosystem by providing advanced semiconductor assembly and testing solutions for domestic and global customers.
Official Exchange Filing: CG Power and Industrial Solutions Limited
