CG Power & Industrial Solutions just flipped the switch on India’s semiconductor ambitions. The company’s subsidiary, CG Semi, has begun commercial chip production at its Outsourced Semiconductor Assembly and Test facility in Sanand, Gujarat, with a capacity to churn out roughly 200 million chips per year.

That’s approximately 500,000 chips per day rolling off the G1 pilot line.

The deal behind the chips

CG Semi operates as a joint venture with CG Power holding the majority stake, alongside Japan’s Renesas Electronics and Thailand’s Stars Microelectronics. The total investment clocks in at around 7,600 crore rupees, roughly $900 million.

The facility focuses on assembly, packaging, and testing, covering chips destined for consumer electronics, automotive systems, industrial applications, and power management.