Over the last three sessions, the Murugappa Group company’s stocks have grown 12%. The buying action was accompanied by strong volumes as over 65 lakh shares changed hands on the NSE around 1:30 PM.
CG Power has announced plans to invest over Rs 7,600 crore ($870 million) in its new plant over the next five years.
The investment is backed by central and state government support and comes in collaboration with global partners Renesas and Stars Microelectronics.
The funds will be used to develop two advanced OSAT facilities, G1 and G2, in Sanand.
The company claimed that this project marks a major step in strengthening India’s semiconductor manufacturing ecosystem and advancing the country’s technological self-reliance.The G1 facility, inaugurated last week, will operate at a peak capacity of around 0.5 million units per day. It is designed for comprehensive chip assembly, packaging, testing, and post-test services.Equipped with high-yield equipment, a cutting-edge Manufacturing Execution System (MES) for automation and traceability, and in-house labs for reliability analysis, the facility is currently undergoing ISO 9001 and IATF 16949 certification. Commercial production is scheduled to begin in the calendar year 2026, following customer qualification runs.
The G2 facility, located about 3 km from G1, is under construction and expected to be completed by end-2026. Once operational, it will significantly scale up production to 14.5 million units per day. Combined, the two facilities are projected to create over 5,000 direct and indirect jobs in the coming years.
Speaking at the launch, Vellayan Subbiah, Chairman of CG Power, had 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.”
To support operations, CG Semi has assembled a team of industry veterans with more than 1,000 years of combined experience in semiconductors. It has also invested in workforce development by sending Indian engineers, operators, and technicians to Malaysia for hands-on training, ensuring readiness for high-volume operations.
Shares of CG Power have rallied 26% in the past 6 months while the stock’s returns over the past 12 months are around 8%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times
as a Reliable and Trusted News Source