CG Power Expands Semiconductor Investments, Enhances Artificial Intelligence Design Capabilities
CG Power Doubles Down on Semiconductor Ambitions
CG Power & Industrial Solutions is intensifying its focus on semiconductors, with the company indicating plans to invest in more chip design startups and AI-linked technologies as it expands its outsourced semiconductor assembly and test (OSAT) business and design capabilities.
During the company's Q4 FY26 earnings call, CG Power's Managing Director and CEO Amar Kaul outlined the company's strategy to strengthen its technology stack through subsidiary Axiro. The comments come weeks after Axiro Semiconductor, a wholly-owned subsidiary of CG Power and Industrial Solutions, invested in Japanese fabless semiconductor company EdgeCortix, which specializes in energy-efficient AI processing.
CG Power is actively evaluating a pipeline of semiconductor design opportunities and acquisitions to enhance its technology stack through Axiro. The company's first focus area was RF design capability, but Kaul emphasized that Axiro's scope extends beyond this area. Rapid advances in AI are creating opportunities for further strategic investments, and the company plans to invest in startups and companies that offer cutting-edge technologies.
In addition to expanding its semiconductor design capabilities, CG Power is scaling up its OSAT business through CG Semi. The company has recently launched the G1 facility in Sanand, Gujarat, which is among India's first end-to-end OSAT plants, with a peak production capacity of 0.5 million units per day. A second facility, G2, is under construction and expected to be completed by the end of 2026, with planned capacity of about 14.5 million chips per day.
CG Power clarified that around Rs 500 crore in semiconductor revenue booked during FY26 came from the RF business acquired from Renesas and housed under Axiro. The semiconductor business, however, continued to weigh on near-term profitability, with management saying continued investments in semiconductor talent and operations had an impact of Rs 38 crore on quarterly margins.
| Business Segment | FY26 Revenue (Rs Crore) |
|---|---|
| RF Business (acquired from Renesas) | 500 |
| Total Semiconductor Revenue | (not specified) |
| Total Revenue | (not specified) |
Note: The total semiconductor revenue and total revenue figures are not specified in the article, hence left blank in the table.
Investor Takeaway
CG Power is expanding its semiconductor investments and enhancing AI design capabilities, which may have a positive impact on the company's growth prospects.
More in Market
Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More
FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round
Global Markets: Key Indicators to Monitor in Today's Trading Session
