CG Semi has taken a major step towards domestic semiconductor sovereignty by opening India’s first full-scale OSAT facility in Gujarat.
🟦 India’s First Full-Scale OSAT Facility, CG Semi, Commences Operations in Sanand
CG Semi has opened its first Contract Semiconductor After-Processing (OSAT) facility in Sanand, Gujarat. In addition to its parent company, CG Power (Murugappa Group), it will collaborate with Renesas Electronics in Japan and Stars Microelectronics in Thailand to fill the void in India’s semiconductor industry.
- Investment plan: Approximately 76 billion rupees (approximately 128 billion yen) will be invested over five years to develop two bases
- G1 plant: with a processing capacity of 500,000 units per day, commercial production scheduled to begin in 2026
- G2 plant: Scheduled to be completed by the end of 2026 and expanded to 14.5 million units per day, creating more than 5,000 jobs at both plants
The company offers a diverse range of packaging technologies, including SOIC, QFP, QFN, BGA, FCQFN, and FCBGA, targeting a wide range of industries, including automotive, defense, infrastructure, and IoT.
🟦 Background on India’s Need for OSAT
In India, although the design and EDA sectors have had a growing presence, there has been a lack of back-end processes such as assembly, packaging, and testing. In the midst of the need to decentralize the semiconductor supply chain, the government has set up the “India Semiconductor Mission” and is strongly supporting the establishment of back-end processes in its own country. Although competition with existing giants such as Taiwan and ASE is severe, this joint venture model demonstrates a new strategy of “localization through collaboration with foreign capital.”
🟦 Summary
CG Semi’s Sanand site is a symbolic facility where India fills the “back-end void” in the semiconductor industry. Once the G1 and G2 are aligned, the mass production capacity will be attracting attention worldwide, and we will have a system that can stably supply to the domestic and overseas markets.
The day when the Indian-made iPhone will be equipped with a chip assembled at this OSAT base is near.
