CG Power share rise over 5% as subsidiary launches Rs 7,600-cr semiconductor assembly unit in Gujarat

CG Power share rise over 5% in August 29 trade. 

Shares of CG Power and Industrial Solutions Ltd gained more than 5 percent on Friday after its subsidiary launched a semiconductor assembly and testing facility in Gujarat.

The stock rose 5.38 percent to an intraday high of Rs 699.75 apiece on the NSE, snapping a three-day losing streak.

CG Semi Pvt Ltd, a wholly-owned unit, announced the launch of its first Outsourced Semiconductor Assembly and Test (OSAT) unit at Sanand in Gujarat. The company will invest Rs 7,600 crore to set up two facilities — G1 and G2 — in partnership with Japan’s Renesas and Thailand’s Stars Microelectronics.

With the commissioning of the G1 facility, CG Semi has become India’s first full-service outsourced semiconductor assembly and test provider. The unit will have a peak capacity of about 0.5 million units per day and will handle chip assembly, packaging, testing and related services, the company said.

"The facility represents more than a milestone for me or for CG Semi; it is a national milestone,” Vellayan Subbiah, Chairman, CG Power, said in a statement. “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," he added.

The second unit, G2, is under construction and is expected to be ready by the end of 2026. It will have a capacity of about 14.5 million units per day. Together, the two facilities are projected to create more than 5,000 direct and indirect jobs, according to the company.

The project is being developed with support from the Centre and the Gujarat government, it added.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.