CG Power's OSAT JV begins commercial chip production in Gujarat
G1 facility in Sanand can produce up to **300 million chips per year**; total five-year investment of **₹7,600 crore** for two OSAT plants.
What's new
- CG Semi started commercial production at its Sanand OSAT facility on 4 July 2026.
- G1 unit has peak capacity of 300 million chips per year; G2 is under development.
- PM Modi, Gujarat CM, and Union Minister attended, signalling national importance.
Why this matters
The commencement moves the semiconductor JV from development to revenue generation, providing CG Power entry into the high-growth chip assembly and test market. With backing from Renesas and Stars Micro and visible government support, the JV could become a meaningful long-term earnings contributor.
What we're watching
- Ramp-up of G1 utilisation and first quarterly OSAT revenue.
- Timeline for G2 facility completion.
- Any further government incentives or partnerships.
The full read
CG Power's joint venture CG Semi started commercial production at its OSAT facility in Sanand, Gujarat, on 4 July 2026. The G1 unit, inaugurated in August 2025, has a peak capacity of 300 million chips per year and has completed equipment installation, process stabilisation and customer qualification. CG Semi is investing over ₹7,600 crore over five years in two OSAT facilities, with G2 under development. Prime Minister Narendra Modi attended the launch, signalling strong government backing for the project. The JV, which also involves Renesas and Stars Micro, now shifts from buildout to revenue generation — a meaningful step for CG Power's diversification into high-tech manufacturing.
Questions answered
- Who are the partners in CG Semi?
- CG Semi is a joint venture of CG Power, Renesas Electronics, and Stars Microelectronics.
- What capacity does the G1 facility have?
- G1 has a peak annual capacity of up to 300 million chips.
- Where is the OSAT facility located?
- It is in Sanand, Gujarat.
- How much is being invested in total?
- CG Semi is investing over ₹7,600 crore over five years in two OSAT facilities.
- When was G1 originally inaugurated?
- G1 was inaugurated in August 2025.
- What is the status of the second facility?
- The second facility, G2, is under development.