Sanand OSAT Plant Boosts India’s Tech Capabilities
Sanand: India strengthened its semiconductor ecosystem with the inauguration of one of its first full-scale Outsourced Semiconductor Assembly and Test (OSAT) facilities here today.
Operated by CG Semi, a joint venture between CG Power and Industrial Solutions Limited of the Murugappa Group, Renesas Electronics Corporation, a global semiconductor company, and Stars Microelectronics, a Thailand-based OSAT and Electronics Manufacturing Services player, the facility provides end-to-end solutions for chip assembly, packaging, testing, and post-test services.
It covers both traditional and advanced packaging technologies, including Small Outline Integrated Circuit (SOIC), Quad Flat Package (QFP), Quad Flat No-leads (QFN), Ball Grid Array (BGA), Flip Chip Quad Flat No-leads (FCQFN), and Flip Chip Ball Grid Array (FCBGA), serving industries such as automotive, defence, infrastructure, and the Internet of Things (IoT). This development marks a significant step in enhancing India’s semiconductor capabilities, supporting the country’s goal of self-reliance under the Atmanirbhar Bharat vision while also catering to global markets.
The ceremony was attended by Union Minister of Electronics and Information Technology Ashwini Vaishnaw, Gujarat Chief Minister Bhupendra Patel, State Industries Minister Balwant Singh Rajput, Member of Legislative Assembly Kanhubhai Patel, senior officials from the Ministry of Electronics and Information Technology, and CG Semi leadership.
Backed by central and state government support, CG Semi is investing over ₹7,600 crore (approximately USD 870 million) over five years to develop two state-of-the-art facilities, G1 and G2, in Sanand, Gujarat. The G1 facility, inaugurated on the occasion, operates at a peak capacity of approximately 0.5 million units per day. It is equipped with high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis. The facility is currently undergoing ISO 9001 and IATF 16949 certification, with customer qualification runs across various packages set to begin following the inauguration. CG Semi is on track to commence commercial production in 2026, as committed to the India Semiconductor Mission (ISM). The G2 facility, located about three kilometres from G1, is under construction and expected to be completed by the end of 2026, scaling up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.
The launch is a key part of the India Semiconductor Mission, which has approved ten projects to date. Chips produced at the G1 pilot line will undergo customer qualification, enabling commercial plants to scale up production efficiently. Union Minister Vaishnaw emphasised Gujarat’s growing role as a semiconductor hub under Prime Minister Narendra Modi’s leadership. He highlighted the projected global shortage of one million semiconductor professionals by 2032, noting India’s potential to address this gap. The government has partnered with 270 universities, equipping them with advanced semiconductor design tools that recorded over 1.2 crore usages in 2025. As a result, 20 chips designed by students from 17 institutions have been fabricated at the Semi-Conductor Laboratory in Mohali. Few countries provide students with such tools, enabling India to build a skilled workforce and a robust technical ecosystem.
Chief Minister Bhupendra Patel commended the initiative for positioning India as a leader in semiconductor design and manufacturing, acknowledging Gujarat’s support in developing the state’s semiconductor ecosystem. Vellayan Subbiah, Chairman of CG Power, stated, “This facility represents more than a milestone for me or 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.” To build and operate the OSAT, CG Semi has assembled a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also sent Indian engineers, operators, and technicians to Malaysia for three months of hands-on training, ensuring a faster learning curve and readiness for high-volume operations.
Headquartered in Sanand, Gujarat, CG Semi is poised to play a pivotal role in advancing India’s semiconductor ecosystem. The company provides comprehensive turnkey solutions for semiconductor assembly and test, covering advanced and legacy packages, and serves diverse applications across key industries. With this launch, CG Semi supports both domestic needs and global markets, contributing to India’s technological advancement and self-reliance.
– global bihari bureau
