CG Power & Industrial Solutions is rapidly strengthening its semiconductor and AI ambitions through strategic investments, acquisitions, OSAT expansion, and advanced chip design initiatives led by Axiro Semiconductor.
As it expands its OSAT business and design capabilities, CG Power & Industrial Solutions is stepping up its goals in the semiconductor industry. The company has indicated that it plans to make additional investments in chip design startups and AI-related technologies.
CG Power Expands Semiconductor And AI Investment Strategy
Managing Director and CEO Amar Kaul stated that the firm is aggressively assessing a pipeline of semiconductor design opportunities and acquisitions to expand its technology stack through subsidiary Axiro during the company’s Q4 FY26 earnings call.
The remarks follow an investment in Japanese fabless semiconductor business EdgeCortix, which specializes in energy-efficient AI processing, by Axiro Semiconductor, a fully-owned subsidiary of CG Power and Industrial Solutions, and Japan-based venture capital firm MPower Partners.
🚀 CG Power Semiconductor Expansion
- Company: CG Power & Industrial Solutions
- Focus Area: Semiconductor design, AI technologies & OSAT business
- Subsidiary: Axiro Semiconductor
- Recent Investment: Japanese AI chip startup EdgeCortix
- Strategy: Acquisitions and startup investments for chip expertise
- Key Goal: Strengthen India’s semiconductor ecosystem
Axiro Semiconductor Focuses On AI And RF Design
“These investments… In response to a query about the company’s semiconductor investments, Kaul stated, “We are looking at a pipeline of candidates on prospective M&A to keep improving on our design expertise.”
RF design expertise was the company’s primary focus area, according to Kaul, but he emphasized that “that is not where Axiro stops,” pointing out that the quick development of AI is opening up prospects for other strategic investments. “You will see an increasing number of these investments pouring into even these startups or these kinds of companies, where we will learn about the most recent developments in the world,” he stated.
CG Semi OSAT Plants In Gujarat Boost Manufacturing Capacity
Through CG Semi, the company is concurrently expanding its outsourced semiconductor assembly and test (OSAT) business. With a peak manufacturing capacity of 0.5 million units per day, the recently opened G1 facility in Sanand, Gujarat, is one of India’s first end-to-end OSAT plants, according to management.
With a planned capacity of roughly 14.5 million chips per day, a second plant, G2, is currently under construction and is anticipated to be finished by the end of 2026. Additionally, CG Power explained that the RF business bought from Renesas and held under Axiro was the source of approximately Rs 500 crore in semiconductor revenue recorded during FY26.
🏭 Gujarat OSAT Plants & Semiconductor Revenue
- G1 Facility: Located in Sanand, Gujarat
- Production Capacity: 0.5 million semiconductor units daily
- G2 Facility: Under construction, expected by end of 2026
- Planned G2 Capacity: Around 14.5 million chips per day
- Revenue Source: RF business acquired from Renesas
- FY26 Semiconductor Revenue: Approximately Rs 500 crore
Semiconductor Investments Impact Quarterly Margins
CFO Susheel Todi stated, “This is the revenue that is coming from the company that we bought from Renesas—the RF business from the Renesas.” According to Kaul, CG Power’s semiconductor company, Axiro, has already started making money from the purchased RF operations.
However, the semiconductor industry continues to have a negative impact on short-term profitability. According to management, ongoing expenditures in semiconductor operations and talent had an effect on quarterly margins of Rs 38 crore.
Frequently Asked Questions
1) Why does CG Power fund semiconductor startups?
Through strategic investments and acquisitions worldwide, CG Power seeks to enhance semiconductor design knowledge, broaden AI capabilities, and accelerate growth.
2) What part does Axiro Semiconductor play in the strategy of CG Power?
With an emphasis on RF design, AI technologies, startup investments, and semiconductor-related company expansion operations, Axiro is in charge of CG Power’s semiconductor projects.
3) What makes Gujarat’s G1 OSAT facility unique?
One of the first integrated OSAT plants in India, the G1 facility in Sanand can produce 0.5 million semiconductors per day.
4) What impact is AI having on CG Power’s investments in semiconductors?
CG Power is strengthening its future semiconductor capabilities by smart investments in efficient chip technologies made possible by the rapid improvements in AI.
5) What impact did semiconductor activities have on CG Power’s bottom line?
Costs grew due to large investments in semiconductor talent, operations, and expansion initiatives, which had a substantial impact on quarterly margins by almost Rs 38 crore.
Conclusion
In order to spur future growth, CG Power is rapidly growing its semiconductor and AI capabilities through Axiro, OSAT facilities, acquisitions, and startup investments.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice.
