CG Power Shares Rise 4% on Rs 7,600 Crore OSAT Facility Investment in Gujarat; Nomura Predicts 26% Upside

CG Power and Industrial Solutions shares jumped 3.8% after its subsidiary, CG Semi, unveiled an end-to-end OSAT facility in Gujarat, backed by a Rs 7,600 crore investment. Nomura predicts a 26.5% upside potential for the stock. The facility will create over 5,000 direct and indirect jobs and is expected to be operational by calendar year 2026.

CG Power and Industrial Solutions Limited (CGPOWER, BSE: 500093) saw its shares jump by 3.8% following the unveiling of its subsidiary, CG Semi Private Limited (CG Semi), which has launched India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The new facility, backed by a Rs 7,600 crore investment, is expected to create over 5,000 direct and indirect jobs and commence commercial production by the end of 2026 [1].

CG Semi, a joint venture between CG Power and Industrial Solutions Ltd., Renesas Electronics Corporation, and Stars Microelectronics, has invested in two state-of-the-art facilities, G1 and G2. The G1 facility, which was inaugurated on August 29, has a peak capacity of approximately 0.5 million units per day and is equipped with high-yield equipment and advanced Manufacturing Execution Systems (MES) for Level 1 automation. The G2 facility, currently under construction, is projected to reach a capacity of 14.5 million units per day once operational [1].

Nomura has predicted a 26.5% upside potential for CGPOWER’s stock, citing the strategic significance of the new OSAT facility in strengthening India’s semiconductor capabilities and supporting the country’s goal of self-reliance in the semiconductor sector [1]. The facility is part of the broader Atmanirbhar Bharat (Self-Reliant India) vision, which aims to reduce the country’s dependence on imported technology and components.

CG Semi’s launch comes amidst a global push for semiconductor sovereignty, with countries like India, the United States, and China investing heavily in semiconductor manufacturing to reduce reliance on foreign suppliers. The new OSAT facility is expected to serve both domestic and international markets, providing comprehensive turnkey solutions for semiconductor assembly and testing [1].

The development is a significant milestone for CGPOWER, which has been actively involved in various infrastructure and industrial projects. The company’s focus on advanced manufacturing and technology underscores its commitment to driving innovation and growth in the Indian market [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250828997549/cg-semi-unveils-one-of-indias-first-end-to-end-osat-facilities-in-sanand-gujarat