India’s semiconductor strategy has achieved its first major industrial milestone. CG Power & Industrial Solutions, through its subsidiary CG Semi, has commenced commercial chip production at its new Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat.
The initial G1 pilot line is outputting approximately 500,000 chips per day, targeting an annual capacity of roughly 200 million units.
The facility is the result of a joint venture between majority stakeholder CG Power, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics. The total capital deployment for the assembly, packaging, and testing center is roughly 7,600 crore rupees, or $900 million. Its output will serve consumer electronics, automotive, industrial, and power management sectors.
Prime Minister Narendra Modi is planning a formal inauguration for July 4, 2026, though initial customer shipments are expected to begin as early as June 19, 2026. The operation represents the first concrete output from the government-backed India Semiconductor Mission, following the pilot line inauguration in August 2025.
Looking ahead, CG Power is already developing a G2 facility designed to scale production nearly 30 times over, aiming for 14.5 million chips per day by late 2026. The company is also diversifying into chip design and investing in artificial intelligence startups.