CG Power and Industrial Solutions plans to generate $500 million in annual revenue from its semiconductor packaging business within four years. While the company’s traditional power equipment business remains strong with an order book of over ₹15,700 crore, investors should monitor the startup risks in the chip segment and recent governance changes.
CG Power and Industrial Solutions is looking to make its mark in the semiconductor space, targeting $500 million in annual revenue from its advanced packaging business over the next four years. This strategy marks a major shift for the company, moving from its traditional power and industrial roots into the high-technology semiconductor assembly and testing (OSAT) sector.
The company has already taken concrete steps toward this goal, with its G1 packaging facility in Sanand, Gujarat, beginning commercial production as of July 2026. The facility aims to reach a peak capacity of 300 million units per year. To reach the $500 million revenue target, the company is also planning a larger G2 facility, which remains a key project for long-term growth. The company’s management believes the current global demand for high-performance chips, driven by artificial intelligence and data center needs, creates a favorable environment for early entrants like CG Power.
While the semiconductor bet is the new growth story, CG Power continues to rely on its established industrial business. The company reported strong performance for the financial year 2026, with revenue growing 21% year-on-year. This stability is supported by a robust unexecuted order book of ₹15,719 crore as of the end of FY26. This backlog provides a revenue cushion, as demand for power transformers and electric motors remains high due to infrastructure expansion and renewable energy projects in India.
However, the company’s aggressive expansion comes with notable risks that investors should watch closely. The semiconductor packaging business is capital-intensive and involves complex execution. High initial startup costs and the risks of building new technology facilities may put pressure on the company's profit margins in the near term. Furthermore, the firm recently navigated a suspected cybersecurity incident in August 2026, though the company confirmed that core operations remained unaffected.
Another point for investors to track is recent governance developments. In August 2026, the company’s statutory auditor, S.R. Batliboi & Associates LLP, resigned. While companies frequently change auditors, any change in auditing firms is a significant monitorable for shareholders to ensure operational transparency and clear financial reporting. Investors should keep a close eye on management commentary regarding the timeline for the G2 semiconductor facility, the ramp-up in utilization at the G1 plant, and how the company manages the cash flow needs of its new tech business against its traditional industrial operations.