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CG Power and Industrial Solutions, through its semiconductor division CG Semi, has announced a landmark investment of Rs 76 billion over the next five years to enhance and expand operations at its Sanand facilities in Gujarat. This substantial capital injection coincides with the unveiling of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facility by CG Semi, a critical step towards bolstering the country’s semiconductor manufacturing capabilities.
A New Dawn for India’s Semiconductor Sector
The announcement comes at a time when India is focusing heavily on establishing a resilient and self-reliant semiconductor ecosystem as part of its broader industrial policy initiatives. CG Power’s strategic investment underscores its commitment to aligning with national priorities through innovation, advanced technology adoption, and infrastructure development in the semiconductor value chain.
Key Takeaways from the Investment and Facility Launch
CG Semi’s Rs 76 billion investment plan is scheduled for progressive deployment over five years, aimed at scaling production capacities and modernizing technology infrastructure at the Sanand site.
The newly launched OSAT facility provides comprehensive semiconductor packaging and testing solutions, positioning CG Semi as a full-spectrum player capable of supporting integrated device manufacturers (IDMs), fabless companies, and foundries.
The Sanand facility integrates advanced Industry 4.0 practices, including automation, precision testing, and quality control measures designed to meet stringent global standards.
CG Power emphasizes the importance of the OSAT operations in shortening semiconductor supply chains, enhancing product reliability, and enabling faster time-to-market for semiconductor devices.
About the End-to-End OSAT Facility
The OSAT facility at Sanand represents a fully equipped setup capable of performing wafer bumping, packaging, testing, and final assembly of semiconductor components. Unlike partial service providers, CG Semi’s offering covers the entire post-fabrication process, ensuring high efficiency, traceability, and quality assurance from raw wafer to customer-ready packaged chips.
The facility boasts state-of-the-art equipment adhering to international certifications and compliance protocols, facilitating production capacities tailored for sectors ranging from consumer electronics, automotive, industrial applications to emerging 5G and IoT devices.
Investment Impact on Local Economy and Technology Ecosystem
The Rs 76 billion investment signals a significant economic stimulus for Gujarat, generating direct and indirect employment opportunities and encouraging ancillary industries such as raw material suppliers, logistics providers, and technology vendors.
Moreover, the development strengthens India’s ambitions to become a regional semiconductor hub, reducing reliance on overseas players and mitigating risks exposed by recent global chip shortages. It also encourages innovation collaborations with research institutes, startups, and global semiconductor companies.
CG Power’s Role in India’s Modern Industrial Landscape
CG Power and Industrial Solutions, traditionally known for its electrical and power solutions, has diversified into the semiconductor field through CG Semi, reflecting its adaptability and vision to participate in emerging high-growth sectors.
This push into chip manufacturing and assembly is expected to enhance CG Power’s technological portfolio, deepen its manufacturing prowess, and build synergies between its power systems expertise and semiconductor know-how.
Global and Domestic Market Positioning
With the OSAT facility, CG Semi aims to capture a growing share of the semiconductor assembly and test services market, catering to India’s burgeoning electronics manufacturing segments under the ‘Make in India’ initiative.
Internationally, the facility qualifies CG Semi to partner with global semiconductor supply chains, offering localized and cost-competitive solutions while adhering to global quality and delivery standards.
Future Outlook and Expansion Roadmap
The phased investment plan contemplates further capacity expansion, technology upgradation, and the integration of artificial intelligence and machine learning for predictive maintenance and production optimization.
CG Power is also exploring opportunities to introduce specialized packaging technologies such as system-in-package (SiP), fan-out wafer-level packaging (FOWLP), and advanced thermal management solutions to meet the demands of next-generation semiconductor devices.
To support sustainable growth, the company is focusing on energy efficiency, waste minimization, and eco-friendly manufacturing practices aligned with India’s environmental regulations and green industrial policies.
Conclusion
CG Power and Industrial Solutions’ Rs 76 billion investment and the launch of the comprehensive OSAT facility at Sanand mark a transformative milestone in India’s semiconductor landscape. By integrating advanced post-fab capabilities under one roof, CG Semi enhances domestic value addition, empowers local manufacturing, and contributes significantly to national technological self-reliance.
Sources: Moneycontrol, Reuters, Economic Times, Business Standard, CG Power official announcements
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