CG Semi ships its first chips from the Sanand OSAT plant

By Ansuman Agarwal, Editor ·

CG Semi, the Murugappa group joint venture with Renesas and Stars Microelectronics, began commercial production at its G1 OSAT plant in Sanand in July 2026. Peak capacity is 300 million units a year; the group is putting ₹7,600 crore into G1 and a second plant, G2, over five years.

A processed silicon wafer, its surface divided into rectangular dies
A processed silicon wafer before dicing; each rectangle is one die. Cutting, packaging and testing the dies is the OSAT step. Photo: Retro-Computing Society of Rhode Island, CC BY-SA 4.0, cropped

What happened

CG Semi began commercial production at its G1 plant in Sanand, Gujarat, in July 2026, Verdict reported on 6 July. The plant is an OSAT facility: it takes finished silicon wafers from chip makers and turns them into packaged, tested chips ready to solder onto a board.

CG Semi is a joint venture between CG Power and Industrial Solutions, part of the Murugappa group, Renesas Electronics of Japan and Stars Microelectronics of Thailand. The G1 plant was inaugurated in August 2025; the eleven months since went on equipment installation, process stabilisation, workforce training and customer qualification. Peak capacity is 300 million units a year. The group has committed ₹7,600 crore over five years to G1 and a second, larger plant, G2, which is under development on the same site.

Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel and Union Minister Ashwini Vaishnaw attended the first shipment. “Today, this first shipment speaks louder than any words,” said Vellayan Subbiah, chairman of CG Power, in the company’s statement.

Why it matters

Sanand is forty kilometres from Ahmedabad and already a vehicle-making cluster. A chip packaging plant of this size needs what a machine shop in Gujarat sells: precision fixtures, cleanroom fit-out, material handling, compressed air, power conditioning and maintenance contracts. The second plant, G2, has not yet been built, so the supplier list for it is not yet closed.

For the MSME owner, the practical question is which of those needs a firm of your size can bid for. The plant’s own statement names none of its suppliers; the first shipment is the signal, not the tender. Since this story ran, the government has notified what the Machines and Materials pillar pays a firm that makes semiconductor equipment or its sub-assemblies in India.

What happens next

No date has been given for G2. The company has said only that it will add capacity “upon completion”. Product names and first customers were not disclosed. EngiNewsIndia will report the G2 timeline and the supplier programme when CG Semi or the Gujarat government publishes either, with the rest of the electrical, electronics and solar reporting. The next place to meet the Sanand cluster in person is the Ahmedabad edition of EngiExpo, 19 to 21 December 2026.

Electrical, electronics & solarTechnology & AI in industryGujarat

Sources

  1. Verdict — CG Semi starts commercial production at Sanand OSAT plant in India · checked 2026-09-20
  2. Business Standard — CG Semi starts commercial production at G1 OSAT facility in Sanand · checked 2026-09-20