G2, is currently under construction and is expected to be completed by the end of 2026
CG Power and Industrial Solutions is strengthening its semiconductor ambitions with plans for additional investments in chip design startups and AI-driven technologies while rapidly expanding its OSAT business in India.
Speaking during the company’s Q4 FY26 earnings call, Managing Director and CEO Amar Kaul said the company is actively evaluating multiple semiconductor design opportunities and acquisitions through its subsidiary Axiro Semiconductor to enhance its technology capabilities.
The comments follow Axiro Semiconductor’s recent investment, alongside Japan-based venture capital firm MPower Partners, in Japanese fabless semiconductor startup EdgeCortix, which develops energy-efficient AI processing solutions.
“These investments… we are looking at a pipeline of candidates on potential M&A to keep building on our design capability,” Kaul said during the call. He noted that while RF design remains the company’s initial focus area, Axiro’s strategy extends beyond that as AI-driven semiconductor innovation creates new investment opportunities.
The company is also scaling its outsourced semiconductor assembly and test (OSAT) operations through CG Semi. Management stated that the newly operational G1 facility in Sanand is among India’s first end-to-end OSAT plants and has a peak production capacity of 0.5 million units per day.
A second plant, G2, is currently under construction and is expected to be completed by the end of 2026. Once operational, the facility is planned to deliver production capacity of approximately 14.5 million chips per day, significantly expanding the company’s semiconductor manufacturing footprint.
