CG Power & Industrial Solutions stock reached a seven-month high following the launch of India's first outsourced semiconductor assembly and testing (OSAT) facility by its unit, CG Semi. The company's shares continued their upward trajectory for a second consecutive session, reflecting investor optimism about this significant development in India's semiconductor industry.

Stock Performance

The stock of CG Power & Industrial Solutions demonstrated strong performance:

• Gained 4.56% over two sessions
• Rose as much as 3.69% to Rs 711.90
• Reached its highest level since January 8
• Trading volume surged to 7.6 times its 30-day average

CG Semi's OSAT Facility

CG Semi, a unit of CG Power & Industrial Solutions, has marked a milestone in India's semiconductor industry:

• Launched India's first OSAT facility in Sanand, Gujarat
• Became one of India's full-service OSAT providers
• Offers solutions across traditional and advanced packaging technologies
• Received support from both central and state governments

Strategic Collaborations and Investment Plans

CG Semi has made strategic moves to strengthen its position in the semiconductor industry:

• Collaborated with Renesas and Stars Microelectronics
• Plans to invest Rs 7,600.00 crore over five years
• Aims to develop two facilities in Sanand, Gujarat

Analyst Outlook

The market sentiment towards CG Power & Industrial Solutions remains largely positive:

The average 12-month consensus price target implies a 5.10% upside.

This development marks a significant step for CG Power & Industrial Solutions in the semiconductor industry, potentially positioning the company as a key player in India's growing technology sector.

CG Power & Industrial Solutions , through its subsidiary CG Semi Private Limited, has unveiled one of India's first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facilities in Sanand, Gujarat. This landmark development marks a significant step towards India's semiconductor sovereignty and strengthens the country's position in the global semiconductor industry.

Investment and Capacity

The company is making a substantial investment of over ₹7,600.00 crore (approximately USD 870.00 million) over five years to develop two state-of-the-art facilities, G1 and G2, in collaboration with Renesas and Stars Microelectronics. This investment aligns with India's vision of becoming self-reliant in semiconductor manufacturing while also serving global markets.

G1 Facility

The newly inaugurated G1 facility boasts impressive capabilities:

• Peak capacity: Approximately 0.50 million units per day
• Services: End-to-end chip assembly, packaging, testing, and post-test services
• Features: High-yield equipment, cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability
• In-house labs for reliability and failure analysis
• Certifications: Currently undergoing ISO 9001 and IATF 16949 certification

Commercial production at the G1 facility is expected to commence in 2026.

G2 Facility

Located about 3 km from G1, the G2 facility is currently under construction:

• Expected completion: End of 2026
• Projected capacity: Approximately 14.50 million units per day

Job Creation and Economic Impact

The combined operations of both facilities are projected to generate over 5,000 direct and indirect jobs in the coming years, contributing significantly to the local economy and India's semiconductor ecosystem.

Expertise and Workforce Development

CG Semi has assembled a team of industry veterans with a combined experience of over 1,000 years in semiconductors. The company has also invested in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training, ensuring a faster learning curve and readiness for high-volume operations.

Leadership Perspective

Mr. Vellayan Subbiah, Chairman of CG Power, emphasized the national significance of this facility, stating, "This facility represents more than a milestone for me or for CG Semi; it is a national milestone. It shows how the Government and Industry can come together with conviction, capital, and scale to achieve the vision set by our Honourable Prime Minister. Every chip we make here is a step toward India's technological sovereignty."

About CG Semi

CG Semi is one of India's first dedicated OSAT companies, established as a joint venture between CG Power & Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation, and Stars Microelectronics. The company provides comprehensive turnkey solutions for semiconductor assembly and test, covering advanced and legacy packages such as SOIC, QFP, QFN, BGA, FCQFN, and FCBGA. CG Semi serves diverse applications across industries including Automotive, Defence, Infrastructure, and IoT.

This launch positions CG Semi as a key player in advancing India's Atmanirbhar Bharat vision and strengthening the nation's semiconductor ecosystem. As the facility ramps up operations and moves towards commercial production, it is expected to play a crucial role in reducing India's dependence on semiconductor imports and establishing the country as a global hub for semiconductor manufacturing and testing.