CG Power and Industrial Solutions is positioning its semiconductor business as a global play rather than one limited to domestic ambitions, with Vellayan Subbiah, Chairman, CG Power and Industrial Solutions saying the company’s investments are aimed at serving international customers as global chip supply chains undergo structural realignment.
In his message to shareholders in the FY26 annual report, Subbiah identified the reconfiguration of global semiconductor supply chains as one of the defining trends shaping the company’s future. He said this shift, along with the energy transition, rapid expansion of AI infrastructure and growing demand for energy efficient industrial operations, is creating sustained opportunities across CG Power’s businesses.
“Globally, the energy transition, the proliferation of AI infrastructure, the drive toward higher energy efficiency across industrial operations, and the reconfiguration of semiconductor supply chains are equally durable forces. Together, they are reshaping demand across every segment of CG’s portfolio in ways that are deep, sustained, and accelerating,” Subbiah said.
The chairman stressed that the company’s semiconductor strategy is closely aligned with the broader diversification of global chip manufacturing away from concentrated supply chains.
“The same applies to our semiconductor investments: the supply chain diversification driving India’s semiconductor mission is a global imperative, and our capacities in this space are designed to serve customers globally,” he said.
Subbiah also acknowledged that semiconductors require patience and sustained investment, describing the business as a long term strategic opportunity rather than a quick growth engine.
“Semiconductors are a long gestation business that demand patient capital, technological depth and sustained execution. We are approaching this opportunity with a long term perspective, with the ambition of building globally competitive capabilities that contribute meaningfully to India’s semiconductor journey,” he noted.
The annual report also highlighted progress on CG Power’s semiconductor manufacturing plans. Its subsidiary, CG Semi Private Limited, is developing an Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand in Gujarat. The project is being executed in two phases. During FY26, the company inaugurated its Mini Plant (G1), capable of end to end chip assembly, packaging, testing and post test services, while construction of the Main Plant (G2) is underway and is expected to be completed by the end of calendar year 2026.
Besides manufacturing, CG has also expanded its semiconductor design capabilities through the Axiro Semiconductor Group, which acquired the fabless semiconductor design business of Renesas Electronics America and its affiliates during FY26, strengthening the company’s presence across the semiconductor value chain.
