Another milestone for India’s semiconductor ambitions? CG Semi has started commercial chip shipments from Sanand, marking another step towards integrating the country into global semiconductor supply chains.
CG Semi, the semiconductor subsidiary of CG Power, has started commercial shipments of assembled semiconductor chips from its pilot outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, marking another milestone in India’s efforts to establish a domestic semiconductor manufacturing and assembly ecosystem.
According to a report by The Economic Times, the first commercial consignment from the facility was dispatched to Kuala Lumpur airport on 19 June 2026 to serve customers of Japanese semiconductor company Renesas Electronics, CG Semi’s joint venture partner and anchor customer.
The commercial shipments come around 10 months after the pilot facility was inaugurated in August 2025. The project is among the 12 semiconductor proposals approved under the first phase of the India Semiconductor Mission (ISM) in February 2024.
CG Power is investing ₹76 billion over five years to establish the OSAT facility in partnership with Renesas Electronics and Thailand-based Stars Microelectronics. The project comprises two facilities, designated G1 and G2. The pilot G1 unit currently has a peak processing capacity of about 0.5 million units per day and performs chip assembly, packaging, testing, and post-test services.
The facility is designed to package semiconductor devices for consumer electronics, industrial equipment, automotive, power electronics and other applications. The larger G2 facility is expected to become operational by the end of 2026, enabling higher production volumes.
The development follows similar progress by other India Semiconductor Mission beneficiaries, including Micron Technology and Kaynes Semicon, both of which have also started shipping semiconductor products from their assembly, testing, marking and packaging facilities.
Industry experts said the commencement of commercial production and exports demonstrates India’s progress in building semiconductor manufacturing capabilities beyond design.
With Renesas providing both technology support and initial customer demand, the Sanand facility is expected to strengthen India’s participation in global semiconductor supply chains, particularly in chip packaging and testing for sectors such as automotive, industrial electronics, telecommunications, IoT, defence and aerospace.
