CG Power is expanding its semiconductor business with commercial production underway, new capacity in the pipeline and investments across chip manufacturing and design.
CG Power & Industrial Solutions is accelerating its semiconductor business as it looks to tap rising global demand for chips and India’s growing electronics manufacturing ecosystem.
Its subsidiary, CG Semi Pvt. Ltd., has started commercial production at its outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. The G1 plant, inaugurated in August 2025, has an annual production capacity of 300 million semiconductor units and will cater to the automotive, defence, industrial, infrastructure and Internet of Things (IoT) sectors.
According to The New Indian Express, The company is also investing more than $890 million over five years, alongside Japan’s Renesas Electronics and Thailand-based Stars Microelectronics, to build two OSAT facilities. While G1 has entered commercial production, the larger G2 facility is under construction to expand capacity.
In its latest annual report, Chairman Vellayan Subbiah said semiconductors will remain central to technologies such as artificial intelligence, electric mobility, renewable energy and digital infrastructure.
CG Power is also strengthening its presence across the semiconductor value chain through its design arm, Axiro Semiconductor, which has developed over 150 semiconductor IPs and completed more than 200 chip designs deployed in over 600 million chips globally. It has also invested in AI chip developer EdgeCortix to enhance its design capabilities.
According to brokerage Motilal Oswal Financial Services, the semiconductor business is progressing steadily and could achieve EBITDA break-even from FY28 as production scales up.
