Gandhinagar: The Chennai-headquartered Murugappa Group, best known for introducing the iconic Hercules bicycles in India over seven decades ago, has now entered the country’s high-technology manufacturing landscape with semiconductor chip production. Through its subsidiary CG Semi Pvt. Ltd., the group has commenced commercial production of semiconductor chips at its advanced Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, marking a significant milestone in India’s semiconductor mission.
The Murugappa Group established TI Cycles of India in 1949 in collaboration with the UK’s Tube Investments Company. The bicycle manufacturing facility was inaugurated in 1951 by Shri Krishnakumarsinhji Gohil, the last Maharaja of Bhavnagar and then Governor of Madras State. Production of the iconic Hercules bicycles began from this facility, making the brand one of India’s most recognised bicycle manufacturers.
Today, the group has expanded its legacy into advanced electronics manufacturing through CG Semi. On July 4, 2026, Prime Minister Shri Narendra Modi inaugurated commercial semiconductor chip production at the company’s Sanand facility.
₹7,600 Crore Investment to Strengthen India’s Semiconductor Ecosystem
CG Semi Pvt. Ltd., a subsidiary of CG Power and Industrial Solutions Ltd., has established the Sanand OSAT facility with an investment of ₹7,600 crore. The venture is a strategic partnership with Japan’s Renesas Electronics and Thailand’s Star Microelectronics, with CG Semi holding the majority stake.
The semiconductor chips manufactured at the Sanand facility will be purchased by Renesas Electronics, which is also providing technological expertise and support. The plant is expected to cater to both domestic and international markets, strengthening India’s position in the global semiconductor value chain.
Women at the Forefront of Manufacturing
Alongside technological advancement, CG Semi has placed strong emphasis on women’s participation in manufacturing operations. The company has designed its production model so that the majority of factory floor operations are managed by women employees.
Women engineers from Gujarat and several other states were provided three months of specialised practical training at semiconductor facilities in Malaysia before taking up responsibilities at the Sanand plant. Equipped with international exposure and technical expertise, they are now independently operating sophisticated manufacturing equipment.
Young Engineers Building India’s Semiconductor Future
Among the young professionals contributing to the facility are Shreya Patel from Navsari, a 2024 Electronics and Communication Engineering graduate from LD Engineering College, Ahmedabad, and Jhanvi Patadiya from Surendranagar, both serving as Process Quality Engineers.
Shreya Patel said, “Using semiconductor chips made me curious about how they are manufactured. When I got the opportunity to work in this industry, I decided to pursue it. We are currently gaining deep technical knowledge about semiconductor manufacturing.”
Jhanvi Patadiya added, “During our training in Malaysia, we worked in an operational semiconductor plant. Here, we are part of building a new facility from the ground up, which provides exciting learning opportunities every day.”
Vaishnavi Pal from Wayanad, Kerala, who works as a Process Engineer responsible for electrolyte plating operations, said that specialised training helped her transition from chemical engineering to semiconductor manufacturing with confidence.
Sandra E.K., also from Kerala, shared that exposure to the semiconductor industry has significantly broadened her understanding of advanced manufacturing.
Akanksha Tanwar from Indore highlighted that overseas training in Malaysia provided invaluable technical knowledge and opened new career opportunities in the semiconductor sector.
With its transition from manufacturing bicycles to producing advanced semiconductor chips, the Murugappa Group reflects India’s broader industrial transformation—from traditional manufacturing to becoming a global hub for high-technology production. Simultaneously, CG Semi’s focus on empowering women engineers demonstrates how the country’s semiconductor growth is being built on both technological excellence and inclusive workforce development.