Prime Minister Narendra Modi will on July 4 formally inaugurate commercial production at Murugappa Group-owned CG Semi’s semiconductor packaging facility in Sanand, Gujarat, as the company has already started exporting assembled chips to Malaysia, marking a major milestone in India’s push to build a domestic semiconductor ecosystem.
The ceremony marks the transition of the Sanand plant from commissioning to commercial operations, nearly a year after the Prime Minister inaugurated the outsourced semiconductor assembly and test (OSAT) facility on August 28, 2025.
People familiar with the developments said CG Semi has dispatched its first commercial consignments of assembled semiconductor chips from the Sanand facility to Kuala Lumpur to serve customers of its joint venture partner, Renesas Electronics. The shipments are among the first commercial semiconductor package exports from India’s nascent OSAT industry.
The July 4 event will also be attended by Gujarat Chief Minister Bhupendra Patel and Union Electronics and IT Minister Ashwini Vaishnaw, as per social post by India Semiconductor Mission.
The commercial exports were first reported by The Economic Times on July 1.
Backed by central and Gujarat government incentives, CG Semi is investing over Rs 7,600 crore (about $870 million) over five years to establish two OSAT facilities in Sanand in partnership with Renesas and Stars Microelectronics.
The operational G1 facility is among India’s first end-to-end OSAT plants, with a peak production capacity of 0.5 million units a day. A second facility, G2, is under construction and is expected to be completed by the end of 2026, increasing total packaging capacity to about 14.5 million chips per day.
CG Power & Industrial Solutions is also broadening its semiconductor ambitions beyond chip packaging. During its fourth-quarter FY26 earnings call, Managing Director and CEO Amar Kaul said the company is evaluating investments in semiconductor design startups, acquisitions and AI-focused technologies through subsidiary Axiro to strengthen its chip design capabilities.
The commencement of commercial production at Sanand underscores the rapid progress of India’s semiconductor mission, with projects now moving beyond construction into commercial manufacturing, exports and ecosystem development.
