News

CG Power arm launches its first ₹7,600-cr semiconductor assembly unit in GujaratCG Semi Private is investing over ₹7,600 crore (approximately $870 million) over the next five years to set up two state-of-the-art facilities, G1 and G2, in Sanand, Gujarat. The two units are projected to generate over 5,000 direct and indirect jobs in the coming years. Shares of CG Power and Industrial Solutions Ltd ended at ₹663.65, down by ₹7.55 or 1.12%, on the BSE today (August 28).By Jomy Jos Pullokaran   August 28, 2025, 6:18:45 PM IST (Published)2 Min ReadEngineering company CG Power and Industrial Solutions Limited on Thursday (August 28) said its subsidiary CG Semi Private Limited has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.

With this launch, CG Semi Private becomes one of India's first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies. The company said this marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self-reliant while also serving global markets.

The project is backed by central and state government support, and has been developed in collaboration with Renesas and Stars Microelectronics. CG Semi Private is investing over ₹7,600 crore (approximately $870 million) over the next five years to set up two state-of-the-art facilities, G1 and G2, in Sanand, Gujarat.

Also Read: CG Power plans to raise ₹3,000 crore via QIP after highest order win

Capacity and job generation

The G1 facility, inaugurated today (August 28), will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features 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.

It is currently undergoing ISO 9001 and IATF 16949 certification. Customer qualification runs across various packages will begin following the inauguration. CG Semi Private is on track to commence commercial production in calendar year 2026, as committed to ISM.

Located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of the calendar year 2026. Once operational, G2 will scale 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.

Also Read: CG Power eyes 30% revenue growth in FY26, backed by orders and acquisitions

Vellayan Subbiah, Chairman, CG Power, said, “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."

Shares of CG Power and Industrial Solutions Ltd ended at ₹663.65, down by ₹7.55 or 1.12%, on the BSE today (August 28).Continue Reading(Edited by : Shoma Bhattacharjee)Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCG Power and Industrial Solutionsshare market today