CG Power shares surge 5% as Cabinet approves chip plant in Gujarat

Shares of CG Power and Industrial Solutions Ltd rose over 5% today after the Union Cabinet cleared setting up a chip plant in Sanad, Gujarat in collaboration with Renesas (Japan) and Stars Microelectronics, Thailand. The plant will cater to niche products such as in defence. It will be set up with an expenditure of Rs 7,600 crore. The chips will be used in high performance trains, defence, space and EV sectors.

CG Power stock ended 3.75% higher at Rs 443.85 on BSE. It also hit an intraday high of Rs 449.90 rising 5.16% against the previous clsoe of Rs 427.80. Market cap of the firm rose to Rs 67,789 crore .

The stock hit its 52-week low of Rs 276.90 March 20, 2023 and a 52 week high of Rs 501.75 on November 23, 2023. Total 2.13 lakh shares of the firm changed hands amounting to a turnover of Rs 9.24 crore in Thursday's session.

Renesas is a leading semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.

The CG power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications with a capacity of 15 million per day.