CG Semi began commercial production at its chip assembly and testing plant in Sanand, Gujarat, with an initial annual capacity of 200 million chips, according to Bloomberg.
The facility in Sanand is the third semiconductor packaging plant to begin commercial production in India this year
SHAMMI MEHRA / Getty Images
CG Semi began commercial production at its chip assembly and testing plant in Sanand, Gujarat, with an initial annual capacity of 200 million chips, according to Bloomberg.
Prime Minister Narendra Modi inaugurated the facility on Saturday. Electronics and Information Technology Minister Ashwini Vaishnaw, also speaking at the event, said chips from the plant will be exported to Japan, the United States, and Europe, according to Bloomberg.
CG Semi is a joint venture among Mumbai-listed CG Power and Industrial Solutions, Japan's Renesas Electronics, and Thailand's Stars Microelectronics. CG Power holds a 92.3% stake. The venture is committing INR 7,600 crore, roughly $870 million, over five years, with the Indian government covering as much as half of eligible capital expenditure through a subsidy of up to $404 million under the India Semiconductor Mission.
Classified as an outsourced semiconductor assembly and test, or OSAT, operation, the Sanand site handles the back-end stages of packaging and testing finished chips — work that begins after silicon has already been fabricated elsewhere. End markets for the plant's output include automotive, two-wheeler, and industrial applications. According to The Next Web, roughly 5,000 jobs — both direct and indirect — are projected to be generated at the site within a five-year window.
The facility's throughput is targeted to reach 500 million chips per year once expansion phases are complete, up from the 200 million it starts with, according to The Next Web. CG Semi has stated that the plant's ceiling throughput would reach 15 million units daily, implying a theoretical yearly peak of around 4.7 billion chips. Product formats will span older package types such as QFN and QFP through to advanced configurations including FC BGA and FC CSP, serving customers across the automotive, consumer electronics, industrial, and 5G sectors.
CG Semi is the third semiconductor packaging venture to begin commercial production in India in 2026. The first of those was Micron $MU, whose Sanand plant opened in February, with Kaynes Semicon entering production the following month. Two more projects are set to begin operations this year, according to Bloomberg.
Gujarat has now secured approvals for six chip-related projects totaling $14.7 billion in investment, positioning Sanand as the focal point of what is shaping up to be India's first dedicated semiconductor packaging hub.
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