CG Power shares gain 3.5% after company's arm launches semiconductor plant in Gujarat; check details

Backed by central and state government support, and in collaboration with Renesas and Stars Microelectronics, CG Semi is investing over ₹7,600 crore (~$870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat, the company said.

The G1 facility, inaugurated on Thursday, will operate at a peak capacity of approximately 0.5 million units per day. It is equipped to handle end-to-end chip assembly, packaging, testing, and post-test services.

“The facility features high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for Level 1 automation and traceability, and in-house labs for reliability and failure analysis,” the company said.

Further, the G2 facility, which is located about 3 km from G1, is under construction and expected to be completed by the end of calendar year 2026. Once operational, G2 will scale up to a capacity of approximately 14.5 million units per day. Together, the two facilities are projected to generate over 5,000 direct and indirect jobs in the coming years.

To build and operate the OSAT, CG Semi has brought together a team of industry veterans with years of experience in semiconductors. The company has also made significant strides in workforce development by sending Indian engineers, operators, and technicians to Malaysia for three months of hands-on training.

Speaking at the inauguration, Vellayan Subbiah, Chairman, CG Power, said, “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.”

Headquartered in Sanand, Gujarat, CG Semi is a dedicated Outsourced Semiconductor Assembly and Test (OSAT) company, established as a joint venture between CG Power and Industrial Solutions Ltd. (Murugappa Group), Renesas Electronics Corporation (a global semiconductor player), and Stars Microelectronics (a Thailand-based OSAT & EMS player).

On Friday, shares of CG Power surged 3.5% to hit an intraday high of ₹687.5 apiece on the National Stock Exchange. Last seen, it was trading at ₹685.25 per share, rising 3.2%.

Over the last five trading days, CG Power shares advanced over 1.3%, while for a month’s period, the stock gained over 4%.

Since February 28, 2025, which is six months, shares of the firm have soared 20%.

The company’s market capitalisation stands at ₹1.05 lakh crore.

Shares of the firm had touched their one-year high of ₹874.70 apiece on October 11, 2024, while their 52-week low of ₹517.70 was hit on April 7, 2025.