CG Semi is established as a joint venture between CG Power and Industrial Solutions Ltd. of the Murugappa Group, Renesas Electronics Corporation, and Stars Microelectronics.
The launch was held in the presence of Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel and Union Minister of Railways, Information & Broadcasting and Electronics & Information Technology Ashwini Vaishnaw.
Since inauguration, the facility has progressed through equipment installation, process stabilization, workforce training, customer qualification, and quality readiness. With commercial production now underway, CG Semi is positioned to serve customers across the globe, the company said in a statement.
The G1 facility is equipped with high-yield production systems, robust process controls, manufacturing traceability, and in-house reliability and failure analysis capabilities.
Backed by central and state government support, and in collaboration between CG Power, Renesas Electronics Corporation and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore over five years to develop two OSAT facilities – G1 and G2.
While G1 has now commenced commercial production, the second facility, G2, is under development and will significantly scale CG Semi’s production capacity once operational.
CG Semi said it has built a strong talent foundation by bringing together semiconductor professionals with deep experience across assembly, packaging and testing.
The company has invested in training Indian engineers, operators, and technicians for high volume OSAT operations, strengthening India’s semiconductor talent base, it added.
“Five years ago, India pledged to make the nation a semiconductor hub. We moved forward with the mantra of Design in India, Make in India. And today, commercial production of chip packaging has begun at the country’s third semiconductor plant,” Modi said.
This CG Semi plant is also a symbol of the joint efforts of our industry partners from India, Japan, and Thailand. It is not just a business venture, but a model of technology, trust, and partnership that will accelerate India’s semiconductor journey, he said.
“I am told that 200 million chips will be produced here annually. Not 20 lakh, but 20 crore. And I am told you will not stop here. You have set a target of 5 billion chips annually – more than 15 million chips every single day. I am confident you will achieve this soon. This is further proof that the Semicon India Program is gaining momentum – step by step, brick by brick, and now chip by chip,” Modi said.
The foundation of industrial power lies in clusters. America’s Silicon Valley, Taiwan’s Hsinchu Science Park, Japan’s Silicon Island, Tsukuba Science City – all demonstrate the importance of clusters. Today, Sanand too is moving in that direction, he said.
“ Today, chip packaging is happening here. Tomorrow, specialized companies will come, chemicals will be produced, new testing labs will be built, industries servicing machines will emerge, design centers will open, and startups will be born,” Modi said.
This is the strength of clusters. One industry gives birth to hundreds. Hundreds of industries create millions of jobs. And millions of jobs transform the economy of an entire region. And this is not happening only in Sanand – semiconductor clusters are emerging in many states across India, he added.
In recent years, we have strengthened the entire electronics manufacturing ecosystem. India’s total electronics production has increased nearly sevenfold compared to 2014. Electronics exports have grown nearly elevenfold, Modi noted.
“Our effort is not limited to self-reliance in final products. We are also moving towards self-reliance in components. That is why India’s next step is clear,”, he added.
We will not only make mobiles, not only electronics, but also the chips that power the entire electronics world. This is our strategy – first products, then components, and now semiconductors. The entire electronics value chain will be in India. This is the roadmap for a developed India. This is the next phase of Make in India, Modi said.
The next step in the semiconductor ecosystem is self-reliance in critical minerals and high-tech materials, he added.
Our aim is to develop the entire ecosystem in India – from chip design to fabrication to packaging. India will not only make chips, but India’s youth will drive the next technological revolution – in AI, robotics, and next-gen tech – powered by Made in India chips., Modi said.
In the coming times, AI will open up an entire world of new skills and new expertise before you. That is why India’s youth must not miss this opportunity, he said.
“Today, this first shipment speaks louder than any words. It reflects the enormous belief behind these small chips and the combined effort of a remarkable team,” Vellayan Subbiah, Chairman, CG Power, said.
