Archive · 22 Sep 2026
Renesas Chip Venture Moves From Commissioning to Optimisation Phase
Renesas is helping a new chip factory in Gujarat become more efficient.
The factory has already started making chips and is now working to improve how many good products it makes.
Renesas owns a small part of the venture and provides technology and customer orders.
The first facility can eventually produce 300 million units each year.
A much larger second facility is being built nearby.
Together, the facilities are intended to greatly increase chip packaging capacity in India.
Renesas is also preparing chips for future uses such as AI, robots, and smart vehicles.
The company is adding special AI-processing features because future uses may not yet be known.
CG Semi’s Sanand facility has begun commercial production and is now improving yields and throughput.
Renesas holds about 6.8% of CG Semi alongside Stars Microelectronics, while CG Power oversees construction.
The first facility can produce up to 300 million units annually, while the larger second facility is under construction.
CG Semi is investing more than Rs 7,600 crore in two outsourced semiconductor assembly and test facilities.
Renesas is targeting AI data centres, software-defined vehicles, physical AI, and intelligence at the edge.
- Who
- Renesas Electronics, CG Semi, CG Power and Industrial Solutions, and Stars Microelectronics are involved; Malini Narayanamoorthi provided the update.
- What
- The CG Semi chip-packaging venture has moved beyond initial commissioning into a phase focused on improving yields and throughput.
- When
- The first facility began commercial production in July; the second facility is expected to become operational late next year or early 2028.
- Where
- Sanand, Gujarat, India.
- Why
- The venture is working toward full production capacity, while Renesas is supporting technology transfer, serving as an anchor customer, and advancing semiconductor localisation in India.
- Renesas stake
- About 6.8% of CG Semi
- First facility capacity
- Up to 300 million units per year
- Planned combined expansion
- The second facility is expected to raise capacity to roughly 4 billion units per year
- Investment
- More than Rs 7,600 crore over five years
- First facility status
- Commercial production began in July
- Second facility timeline
- Expected to become operational late next year or early 2028
- Renesas role
- Technology transfer, anchor customer support, and an offtake agreement without exclusivity