CG Power Jumps After Inaugurating India’s First Chip Test Facility — SEBI Analyst Targets ₹800 On Breakout

The analyst stated that the new Sanand plant, supported by subsidies and favorable global demand conditions, presents attractive technical levels for investors.

Shares of CG Power and Industrial Solutions rose 4.5% Friday after its subsidiary, CG Semi, inaugurated India’s first outsourced semiconductor assembly and test facility in Sanand, Gujarat. 

The ₹7,600 crore investment, spread over five years, will fund two plants: G1 and G2.

SEBI-registered analyst Varunkumar Patel stated that the company is well-positioned to benefit from India’s ongoing capital expenditure cycle and the government’s initiative to develop a domestic semiconductor ecosystem.

Expansion Plans

Patel pointed out that the facility, set up in partnership with Japan’s Renesas Electronics and Thailand’s Stars Microelectronics, will focus on assembling, testing, and packaging chips, a crucial part of the supply chain that India has so far lacked. 

He noted that government subsidies of up to 50% make the economics highly favorable. 

The company is also continuing to strengthen its businesses in industrial systems, transformers, and renewable energy equipment.

Global And Domestic Drivers

Patel said a rebound in global semiconductor demand, supported by U.S., EU, and Japanese efforts to diversify supply chains under the “China+1” strategy, provides strong momentum for CG Power. 

At home, India’s PLI schemes and infrastructure push provide further support to the sector, creating an environment that leverages the company’s strengths.

Technical Outlook

On the charts, Patel observed that CG Power is trading around ₹698, with support between ₹650 and ₹655 and resistance at ₹700. 

The relative strength index (RSI) at 61 indicates mildly bullish momentum. 

He added that a breakout above ₹700 could pave the way for ₹760–₹800 in the medium term, while dips toward ₹600 may be attractive for long-term investors, with a suggested stop loss at ₹585.

What Is The Retail Mood?

On Stocktwits, retail sentiment for CG Power was ‘bullish’ amid ‘normal’ message volume.

CG Power’s stock has declined 6.4% so far in 2025.

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