We present the first direct study of charge density wave (CDW) formation in quasi-2D single layer LaTe2 using high-resolution angle resolved photoemission spectroscopy and low energy electron diffraction. CDW formation is driven by Fermi surface (FS) nesting, however, characterized by a surprisingly smaller gap ( approximately 50 meV) than seen in the double layer RTe2 compounds, extending over the entire FS. This establishes LaTe2 as the first reported semiconducting 2D CDW system where the CDW phase is FS nesting driven. In addition, the layer dependence of this phase in the tellurides and the possible transition from a stripe to a checkerboard phase is discussed.