CG Power share price is likely to remain in focus on Monday after its joint venture, CG Semi Private Limited (CG Semi), announced the commencement of commercial production at its semiconductor assembly and testing facility in Sanand, Gujarat.
The development marks a key milestone in the company’s semiconductor business. The launch event was attended by Prime Minister Narendra Modi, Gujarat Chief Minister Bhupendra Patel and Union Minister for Electronics and Information Technology Ashwini Vaishnaw.
Commercial production begins at G1 facility
CG Semi said its G1 Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand has entered commercial production after completing equipment installation, process stabilisation, workforce training, customer qualification and quality readiness.
The facility, which was inaugurated in August 2025, has a peak production capacity of up to 300 million semiconductor units annually. With commercial operations now underway, the company said it is ready to serve customers in India and global markets.
Rs 7,600 crore investment planned
CG Semi is a joint venture between CG Power and Industrial Solutions Ltd., Renesas Electronics Corporation and Stars Microelectronics.
The company said it plans to invest more than Rs 7,600 crore over five years to develop two semiconductor assembly and testing facilities, G1 and G2, with support from the central and Gujarat governments.
While G1 has started commercial production, the second facility, G2, is currently under development and is expected to significantly expand the company’s manufacturing capacity once operational.
Focus on talent and quality
According to the company, it has built a skilled workforce by training Indian engineers, operators and technicians for high-volume semiconductor assembly and testing operations.
The G1 facility is equipped with manufacturing traceability systems, process controls, in-house reliability testing and failure analysis capabilities to support high-quality semiconductor production.
Commenting on the development, CG Power Chairman Vellayan Subbiah said the first commercial shipment reflects the team’s efforts and the company’s commitment to building India’s semiconductor manufacturing ecosystem.
The announcement comes as India continues to push for domestic semiconductor manufacturing under its broader electronics and chip-making strategy, with OSAT facilities playing an important role in the semiconductor value chain.
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