Marking a significant progress in India’s journey to develop a robust semiconductor manufacturing ecosystem, a Fiscal Support Agreement (FSA) was signed by India Semiconductor Mission, CG Power and Industrial Solutions Ltd. and CG Semi Pvt. Ltd., on January 17, 2025. This marks an important step in India's efforts to strengthen its semiconductor manufacturing through CG’s OSAT facility which was approved under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem.
CG Power and Industrial Solutions Ltd. is setting up its semiconductor OSAT unit in Sanand, Gujarat, which is in partnership with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., with a total investment of approximately ₹7,600 crore (Project).
The Project will benefit from 50% fiscal support on a pari-passu basis for the eligible CAPEX from India Semiconductor Mission reflecting commitment of the Government of India to strengthen India's position as a key player in the global semiconductor value chain.
The Secretary underscored that the Government of India is committed to offer support at every stage of implementation of the Project with the signing of the FSA. He commended CG Power for their effort in deeply understanding the nuances of the sector and their swift progress while emphasizing on the significance of domestic intellectual property and market development. He expressed confidence that CG Power will play several key roles in the electronics value chain going forward and contribute significantly to India’s goal of reaching the $500 billion production target in electronics by 2030.
Sh. Vellayan Subbiah, Chairman of CG Power and Industrial Solutions Ltd. highlighted that signing of the FSA is a momentous occasion for India’s semiconductor industry, marking a key step toward self-reliance in manufacturing and design. He noted that while Indians constitute nearly 20% of the global semiconductor design workforce, there is a pressing need for India to foster homegrown brands and intellectual property. Additionally, he emphasized the importance of driving demand alongside building a robust semiconductor supply chain.
Sh. Sushil Pal, CEO of India Semiconductor Mission, underlined CG Power's cooperation and promptness in the process of finalization of FSA while concluding the ceremony through his vote of thanks.
By fostering high-tech manufacturing and employment opportunities, the Project is set to drive technological advancement and economic growth in the country, and will strengthen India’s position as a trusted partner in establishing an efficient, resilient and sustainable global semiconductor value chain.
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