Source: The Economic Times
Kolkata, 2 September 2025 — The stock CG Power and Industrial Solutions Ltd has shown strong upward momentum in the market. On Tuesday, the stock rose almost 4% to end the day at ₹742.75 on the NSE – marking the share’s third day of gains. In total, the shares have risen 12% in the last three sessions, fueled by excitement over the newly announced semiconductor business.
The launch of CG Semi drives a rally.
The rally follows the launch of CG Semi, a subsidiary of CG Power, which has established India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.
CG Power announced over ₹7,600 crore ($870 million) in investment in the project over five years and has the commitment of the central and state governments, along with support from their partners Renesas Electronics of Japan and Stars Microelectronics of Thailand.
Two Advanced Plants: G1 and G2
The investment consists of two advanced plants: G1 and G2.
1. G1 facility: The G1 facility opened last week. The plant can produce 0.5 million units per day. The facility and surrounding properties have state-of-the-art equipment, including an automated tracking system and in-house testing labs. The state-of-the-art facility is waiting for ISO 9001 and IATF 16949 certification and is expected to start commercial production in 2026 after customer testing.
2. G2 facility: The G2 facility is 3 km from the G1 facility and is still in the process of being constructed. It is expected to be finished by the end of 2026, at which point it will be able to produce about 14.5 million units per day. In total, the two plants should create over 5,000 jobs over the next several years.
A major leap forward for India’s chip industry
Speaking at the opening ceremony, Vellayan Subbiah, Chairman of 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.”
By hiring specialists with more than 1,000 years of experience in semiconductors, CG Semi is getting ready for operations. They have also sent engineers and technicians to Malaysia for training before ramping up chip production.
