CG Power Shares Surge on India’s First OSAT Facility Launch

CG Power and Industrial Solutions saw its shares jump 3.56% to ₹719 in early trading after its subsidiary CG Semi inaugurated India's first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The stock hit an intraday high of ₹726.20, with trading volumes reaching 96.22 lakh shares by mid-morning.

Morgan Stanley initiated coverage with an 'Overweight' rating and a ₹799 target, citing CG Power's diversified capital goods portfolio and strong positioning in power systems and emerging semiconductor sectors. The ₹7,600 crore facility, part of India's semiconductor self-reliance push, is expected to begin commercial production in 2026, scaling to 14.5 million units daily by year-end.

ICEA Chairman Pankaj Mohindroo hailed the development as a milestone for India's hi-tech manufacturing ambitions. The project aligns with broader government efforts to reduce reliance on foreign chip supplies and establish technological sovereignty.