CG Power and Industrial Solutions' Chairman, Vellayan Subbiah, stated that the company's new outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, has the potential to generate $500 million in annual revenue once it reaches full scale. The company's immediate focus is on gradually increasing the utilization of the new plant.
The conglomerate is targeting 70% utilization at its larger semiconductor packaging facility within approximately four years, though the chairman noted that the revenue would ultimately depend on the product mix and market conditions. This OSAT plant, a partnership with Japan's Renesas Electronics and Thailand's Stars Microelectronics, represents a ₹7,600 crore investment and commenced commercial production in early July 2026. The news comes as the stock rose over 2% in trading, partly attributed to positive sentiment around AI infrastructure spending.