CG Power and Industrial Solutions Ltd, a Murugappa Group entity, is making headlines with a remarkable ascent in its stock value. The company's shares skyrocketed by 20% on the National Stock Exchange on November 22, touching a 52-week peak of ₹469.35. This surge propelled the company's market capitalization to an impressive ₹71,683 crore, registering a year-on-year growth of 74% and a staggering 73% rise in 2023 alone.

The catalyst behind this surge is CG Power's bold move to venture into the semiconductor industry. In a significant development, the company has applied to the Ministry of Electronics and Information Technology (MeitY) for approval to set up an Outsourced Semiconductor Assembly and Test (OSAT) facility. This initiative is part of a broader scheme aimed at establishing a robust semiconductor and sensor fabrication ecosystem in India.

The projected investment for this ambitious project is around $791 million (approximately Rs 6,592 crore). The funding strategy is a blend of subsidy, equity contributions from joint venture partners, and debt financing. CG Power plans to execute this project through a Joint Venture, in collaboration with technology providers and anchor customers, discussions for which are currently underway.

This move is not just a significant shift for CG Power but also a strategic alignment with the global trend of increasing semiconductor demand and its strategic importance. Venturing into the semiconductor sector marks a noteworthy diversification for CG Power, which traditionally focuses on different industries. This decision underscores the company's vision to align with the evolving digital and technology-driven global landscape.

With this strategic pivot, CG Power is set to play a pivotal role in India's burgeoning semiconductor industry, contributing to the nation's technological advancement and economic growth. This venture represents a forward-looking approach, positioning CG Power as a key player in the global tech arena.