Shares of CG Power and Industrial Solutions Ltd rose 5% to a day’s high of Rs 698.30 on 29th August, after the company announced that its subsidiary, CG Semi Private Limited, had launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.

CG Semi Private Ltd, a subsidiary of CG Power, has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. This makes it one of India’s first full-service OSAT providers. The project, backed by support from the central and state governments, is being developed in collaboration with Renesas and Stars Microelectronics. The company will invest over Rs 7,600 crore in two facilities, G1 and G2, over the next five years. This aims to strengthen India’s semiconductor ecosystem and global presence.

The G1 facility, inaugurated on 28th August, has a peak capacity of 0.5 million units per day. It is equipped for chip assembly, packaging, testing, and post-test services. Additionally, it is undergoing ISO 9001 and IATF 16949 certification, with customer qualification runs set to begin soon. Commercial production is expected to start in 2026.

The G2 facility, located 3 km away, is currently under construction. It is expected to be completed by the end of 2026. Once operational, it will scale up capacity to about 14.5 million units per day. Together, both plants are expected to generate over 5,000 direct and indirect jobs.

Chairman Vellayan Subbiah stated that the project is not just a company milestone, but a national one. He emphasized the importance of government-industry collaboration in advancing India’s technological sovereignty.

At 1:18 PM, the shares of CG Power were trading 4.78% higher at Rs 695.75 on NSE.

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