Positive News
CG Power & Industrial Solutions saw a significant increase in shares following the announcement of their partnership to construct and operate a chip plant in India alongside Japanese and Thai partners.
Stock Surge
Shares surged by 5.0% to 465.95 Indian rupees on Friday, reaching a peak of 11% earlier in the day.
Joint-Venture Approval
After the Indian government approved the joint-venture project, CG Power revealed plans to establish a semiconductor assembly and testing facility in Gujarat. This facility aims to serve customers in the automotive, industrial, and 5G sectors.
Strategic Diversification
Vellayan Subbiah, Chairman of CG Power, expressed enthusiasm for the company’s entry into semiconductor manufacturing, labeling it as a strategic diversification. He emphasized their commitment to enhancing India’s semiconductor capabilities and ecosystem.
Stake Distribution
In the joint venture, CG Power will hold a 92.3% stake, with Renesas Electronics from Japan owning 6.8% and Stars Microelectronics from Thailand holding a 0.9% interest. The partnership intends to invest INR76.00 billion ($916.7 million) over the span of five years.
Exciting Progress
The Mumbai-based electrical engineering company’s foray into semiconductor manufacturing represents a notable step forward in their growth strategy.
For more information, contact CG Power & Industrial Solutions.