India’s First CG Semi Chip Plant Opens in Gujarat

CG Semi Private Limited—backed by CG Power & Industrial Solutions, Renesas Electronics (Japan), and Stars Microelectronics (Thailand)—is investing over ₹7,600 crore over five years to build two advanced chip manufacturing facilities, G1 and G2, in Sanand. The G1 pilot plant was inaugurated in August 2025 and is now operational, aiming for a peak capacity of 0.5 million chips per day. The larger G2 plant, under construction, will ramp up to 14.5 million chips daily by the end of 2026.

Why This Matters: India’s Semiconductor Leap

First “Made-in-India” Chips: The Sanand OSAT unit is India’s first to roll out domestically assembled and packaged chips, a key step in the country's push for technology self-reliance.

National and Global Impact: With a projected total annual capacity of 4.7 billion chips, these facilities will serve crucial industries, including consumer electronics, automotive, and electric vehicles.

Job Creation: Together, the two units are expected to generate 5,000+ direct and indirect employment opportunities for engineers, technicians, and support staff

A Closer Look: Technology & Partnerships

State-of-the-Art Production: The OSAT plants carry out chip packaging, assembly, and rigorous testing, using high-end equipment and automated manufacturing execution systems for precision and quality control.

International Collaboration: Renesas and Stars Microelectronics bring global expertise and investment, ensuring the plant meets international standards and can serve customers worldwide.

Certifications Underway: The pilot facility is undergoing ISO 9001 and IATF 16949 certification, bolstering its credibility for global supply.

Timeline and Future Prospects

August 2025: Pilot G1 facility begins operations—first chips to be validated by customers.

2026: Commercial production starts; G2 (main plant) to be completed and begin large-scale manufacturing.

Long-Term Vision: With over ₹7,600 crore invested and ongoing government backing, Sanand is set to become India’s semiconductor hub, paving the way for more advanced fabrication units and higher-level chip design activities

Why Is This Important for India?

This development helps India:

• Move from importing chips to manufacturing them domestically

• Create skilled employment and boost technical expertise

• Support the growth of electronics, automotive, and digital sectors

• Become a global player in chip manufacturing and supply chain resilience

CG Semi’s Sanand plant isn’t just a new factory—it’s a symbol of India’s ambition to become a leader in the semiconductor industry. With high investment, advanced technology, and a massive production scale, the first “Made-in-India” chip highlights a future where India stands tall in global electronics and innovation