Synopsis: Apple is considering the packaging of iPhone chips in India, which indicates that it is going further into localising its supply chain. A significant long-term winner could be a local OSAT company that eventually decides to raise its production capacity if the plans go ahead.
The shares of this leading OSAT player, part of the Murugappa Group, are in focus after a key report on Apple’s plans to diversify its chip packaging operations. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 1,07,056 crore, the shares of CG Power & Industrial Solutions Ltd reached a day high of Rs 690.95 per share, up 3 percent from its previous day’s closing price of Rs 672.85 per share. Over the past five years, the stock has delivered a multibagger return of 1,513 percent, outperforming NIFTY 50’s return of 87 percent.
About the Reports
According to reports, Apple has initiated talks with several Indian semiconductor companies, reportedly, to find out if some iPhone chips can be assembled and packaged domestically in India. Moving forward with this step would be Apple’s first step towards packaging chips in India, thereby deepening India’s role in Apple’s global supply chain.
CG Semi, a part of the Murugappa Group, which is establishing an OSAT (chip assembly and testing) facility in Sanand, Gujarat, is one of the companies involved. The talks are still very early, and there is no understanding yet of the exact chips that may be handled, although display-related chips are considered to be the most likely starting point.
Any collaboration will materialise, depending on whether the Indian plant can meet Apple’s rigorous quality and consistency standards, as only a handful of suppliers are approved. The commercial production of CG Semi’s Rs 7,600-crore OSAT project, which is going to be supported by the government and is scheduled for 2026, could therefore place it in a position to benefit if Apple’s plans unfold.
About CG Semi
CG Semi, a subsidiary of CG Power & Industrial Solutions, is establishing the first end-to-end OSAT (Outsourced Semiconductor Assembly and Test) facility in India at Sanand, Gujarat. The total investment of Rs 7,600 crore is spread over five years. Both the central and state governments are supporting the project, which is being developed in partnership with Renesas Electronics and Stars Microelectronics, thus strengthening India’s semiconductor manufacturing ecosystem.
The capital will be used to set up two advanced facilities, G1 and G2, at Sanand. G1, which was inaugurated on August 28, 2025, is equipped to carry out the assembly, packaging, and testing of the chip, as well as post-test services, with the maximum output being 0.5 million units per day. G2, the next facility, is designed for a capacity as high as 14.5 million units per day. The company has announced that commercial production will start in 2026, which is in line with the India Semiconductor Mission.
Financial Highlights
CG Power & Industrial Solutions has reported an operating revenue of Rs 2,923 crore in Q2 FY26, representing a 21 percent growth compared to Rs 2,413 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 1.6 percent from Rs 2,878 crore.
Regarding its profitability, it reported a net profit of Rs 284 crore in Q2 FY26, a growth of 29 percent as compared to Rs 220 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 6.3 percent from Rs 267 crore.
Howveer, it is necessary to point out that this is still a story that keeps on developing and has not been confirmed yet. The talks are only at the very initial stage and are only of a preliminary nature, and there is no indication of any kind of agreement as yet. Although this news pinpoints a possible future opening for the company, it seems to be considered as such, and any real advantage will be contingent upon the progress of Apple’s plans and the fulfillment of the company of the necessary criteria.
Written by Satyajeet Mukherjee
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