CG Power and Industrial Solutions has dispatched its first semiconductor chips from the Sanand facility in Gujarat, marking a milestone in India's semiconductor journey. Executive Vice Chairman Vellayan Subbiah announced that the company aims to scale production to 16 million chips per day and achieve Grade 1 (G1) qualification within the next 18 to 24 months.
First Shipment and Customer
The initial shipment was sent to Japan's Renesas Electronics, with its India country president present to receive the consignment. Subbiah stated, "We've started shipping from Sanand; we've got our chips qualified with a couple of our customers now and started shipping chips from India to the world."
Facility Capacity and Expansion
The Sanand facility, operated by CG Semi—a joint venture between CG Power, Renesas Electronics, and Thailand's Stars Microelectronics—currently has a capacity of about 1 million chips per day. A second facility under construction will add another 15 million chips per day, bringing total combined capacity to 16 million chips per day. The facility serves as an Outsourced Semiconductor Assembly and Test (OSAT) unit, specializing in packaging, testing, and turnkey solutions.
Employment and Ecosystem
Subbiah noted that the two plants will directly employ 2,000 to 3,000 people, with indirect jobs boosting total employment to 8,000 to 10,000 once the second facility is operational. He emphasized building a full ecosystem in India, stating, "To make a global semiconductor ecosystem player out of India, the different parts that are needed. The fab is coming up. We've set up packaging facilities. There are other facilities coming up now in compound semiconductor. Raw materials are also beginning to come into India."
Qualification and Market Segments
CG Semi is currently qualifying for automotive, industrial, and consumer segments, planning to sell into all three from India. Regarding G1 qualification, Subbiah said, "It will depend on our qualification cycle, but it's definitely our desire that G1, at least within the next 18 to 24 months, we can get there."
Government and Partner Support
The event was attended by Prime Minister Modi, Gujarat Chief Minister Patel, Deputy Chief Minister Sanghvi, and Union Minister Ashwini Vaishnaw. Subbiah called it "a prestigious occasion, a proud occasion for the country" and credited the team and government support for making the first shipment possible. He added that Renesas and STARS Microelectronics "helped us significantly," and CG is working with multiple suppliers and qualifying customers globally.
With packaging in place and compound semiconductor units coming up, Subbiah said India is "definitely on the way" to a complete semiconductor value chain.
