CG Semi OSAT Facility

CG Power & Industrial Solutions | Assembly & Packaging

Published

July 13, 2026

TipWhy This Matters

Murugappa Group’s OSAT facility, built with Renesas and Stars Microelectronics partnerships. Began exporting assembled chips to Malaysia ahead of formal commercial production inauguration.

What does this facility make?

Assembles, tests, and packages semiconductor chips for consumer electronics and industrial applications. Partners with Renesas (Japan) for automotive chips and Stars Microelectronics (Thailand) for packaging technology.

Why does it matter?

CG Semi’s progression from pilot line to commercial production and exports within a year demonstrated that Indian companies can run semiconductor back-end operations at commercial quality and global competitiveness. The Renesas partnership is particularly significant because automotive chips have stringent quality requirements. India producing automotive-grade packages is a stepping stone to becoming a serious player in the global auto supply chain.

Key Facts

Company CG Power & Industrial Solutions
Partners Renesas Electronics, Stars Microelectronics
Type Assembly & Packaging
Capability Consumer & Industrial OSAT (15M chips/day)
Status Operational
Investment ₹7,600 crore
Location Sanand, Gujarat
Category Commercial (ISM Approved)

Technical Complexity

1.5/5

Benchmarked against a 3nm fab (5/5).

Timeliness

1.1m slip → FY2026-27

Revised target: FY2026-27 (Jul 2026)

Project Timeline

  • 29 Feb 2024 — Union Cabinet approves CG Semi OSAT under ISM
  • 01 Jun 2024 — Construction begins at Sanand
  • 28 Aug 2025 — India’s first OSAT pilot line inaugurated — G1 facility goes live
  • 01 Jul 2026 — Begins overseas chip exports to Malaysia
  • 04 Jul 2026 — PM Modi inaugurates commercial production at Sanand

Sources

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