Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over Rs 7,600 crore ($870 million) over five years to develop two facilities (G1 and G2) in Sanand, Gujarat.

The G1 facility, inaugurated on 28th August 2025, will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services. The facility features high-yield equipment, a cutting-edge manufacturing execution system (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis.

Located about 3 km from G1, the G2 facility is under construction and expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.

Vellayan Subbiah, chairman, CG Power, said, “This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India’s technological sovereignty.”

CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems.

The company’s consolidated net profit jumped 11.6% to Rs 269.23 crore on 29.2% increase in net sales to Rs 2,878.05 crore in Q1 FY26 over Q1 FY25.