Murugappa Group, Which Launched Hercules Cycles, Now Manufactures Semiconductor Chips in Sanand

Gandhinagar: From manufacturing the Hercules bicycle to producing advanced semiconductor chips, the Chennai-based Murugappa Group has completed a notable industrial journey spanning more than seven decades. The group, whose TI Cycles factory was inaugurated by the then Governor of Madras and former Maharaja of Bhavnagar, Krishnakumarsinhji Gohil, in 1951, is now manufacturing semiconductor chips at its new facility in Sanand, Gujarat.

The Murugappa Group’s subsidiary, CG Semi Pvt. Ltd., has established a ₹7,600-crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand. Commercial production at the plant was inaugurated by Prime Minister Narendra Modi on July 4, 2026. The facility is now manufacturing semiconductor chips for domestic and international markets, strengthening India’s position in the global semiconductor supply chain.

CG Semi is a joint venture between CG Power and Industrial Solutions Ltd., Japan’s Renesas Electronics, and Thailand’s Stars Microelectronics, with CG Semi holding the largest stake. The chips manufactured at the Sanand facility will primarily be procured by Renesas, which is also providing technological support for the project.

Women at the Centre of Plant Operations

Apart from its technological significance, the Sanand plant is also being recognised for its focus on women’s empowerment. According to company officials, women employees will handle a majority of the operations on the factory floor, including machine operations and production processes.

The company has recruited women engineers from Gujarat and several other states and provided them with specialised training. Before commercial production began, many of these employees underwent three months of practical training at a semiconductor facility in Malaysia, enabling them to independently manage operations at the Sanand plant.

Young Engineers Driving India’s Semiconductor Ambitions

Among the engineers working at the facility is Shreya Bharatbhai Patel from Navsari, who graduated in Electronics and Communication Engineering from LD Engineering College, Ahmedabad, in 2024. Working as a Process Quality Engineer, she is responsible for identifying defects during semiconductor assembly.

“Earlier we only used semiconductor chips, so I was always curious about how they were manufactured. Getting an opportunity to work in this industry has been exciting, and I am enjoying learning the technical aspects of semiconductor manufacturing,” Shreya said.

Janvi Patadia from Surendranagar, also a Process Engineer, said working at a greenfield semiconductor facility has offered unique learning opportunities.

“During our training in Malaysia, we worked in an already operational plant. Here, we are building the operations from scratch. It brings many challenges, but every challenge teaches us something new,” she said.

Vaishnavi Pal, a chemical engineering graduate from Wayanad, Kerala, currently oversees electrolyte plating operations at the plant. She said entering the semiconductor sector has broadened her technical expertise.

“Coming from a chemical engineering background, I initially knew very little about semiconductors. The training has given me valuable exposure, cleared many of my doubts, and significantly boosted my confidence,” she said.

Another Process Engineer, Sandra E.K. from Kerala, said her perception of Gujarat’s industrial ecosystem changed after joining the company.

“I learned about this opportunity during my internship. Before coming here, I wasn’t fully aware of Gujarat’s industrial development. Working here has completely changed my perspective,” she said.

Akanksha Tanwar, an Electronics and Communication engineer from Indore, described the overseas training experience as a major career opportunity.

“It was my first opportunity to travel abroad for technical training. The semiconductor sector offers tremendous opportunities for learning and career growth,” she said.

The Sanand facility is expected to play a key role in India’s semiconductor ecosystem while also setting an example for greater participation of women in advanced manufacturing and high-technology industries.

DeshGujarat