Sanand, a burgeoning automobile and technology hub in Gujarat, India, has now become home to CG Semi’s cutting-edge Outsourced Semiconductor Assembly and Test (OSAT) facility. This state-of-the-art plant promises to revolutionize the semiconductor assembly landscape by reducing import reliance and boosting technological autonomy for the Indian automotive sector.
A Collaborative Endeavour
CG Semi, a partnership venture between Murugappa Group’s CG Power, Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics, embodies global cooperation in technology. The flagship facility, located strategically in Sanand, provides a comprehensive range of semiconductor assembly and testing services, especially catering to the automotive, IoT, 5G, and infrastructure sectors. According to Autocar Professional, CG Semi is set to become pivotal in reducing dependency on foreign semiconductor supplies and encouraging local production.
Government-backed High-tech Advancement
Inaugurated by India’s Union Minister of Electronics and Information Technology, Ashwini Vaishnaw, alongside the Chief Minister of Gujarat, Bhupendra Patel, the facility has strong backing from both state and central governments. This collaboration is expected to play a crucial role in nurturing India’s digital sovereignty and technological ambitions.
Manufacturing Excellence in the Making
The newly launched G1 facility is already gearing up to achieve peak operational capacity, handling approximately 0.5 million semiconductor units daily. Meticulously designed to support future technological demands, the G2 facility, set to begin operations by the end of CY2026, will scale up production to a whopping 14.5 million units per day. This enormous output will empower India’s automotive transition toward software-defined vehicles that require sophisticated chips for advanced digital operations, like ADAS technologies and in-vehicle communications.
Driving the Automotive Future
With growing support for Electric Vehicles (EVs) in India, CG Semi will also become instrumental in providing essential chips for EV technologies, potentially leveling the playing field between EVs and traditional ICE vehicles in terms of semiconductor usage. Just 100km away, Maruti Suzuki India has recently begun dispatching its latest BEV, the e-Vitara, highlighting the rising significance of semiconductor supply in the region.
Pioneering a Technology-led Future
Vinnie Mehta, Director General of Automotive Component Manufacturers Association of India (ACMA), noted the strategic importance of CG Semi’s endeavors: “Strengthening semiconductor manufacturing in India is essential for reinforcing supply chains and accelerating the adoption of advanced automotive technologies.”
As the world closely watches India’s ambition to become a semiconductor powerhouse, CG Semi’s plant is a testament to the country’s commitment to embracing digital innovation and achieving technological prominence on the global stage.