New Delhi, Jan 17 The India Semiconductor Mission (ISM) on Friday signed a Fiscal Support Agreement (FSA) with CG Power and CG Semi, that will help the country develop a robust semiconductor manufacturing ecosystem.
CG Power is setting up its semiconductor OSAT unit in Sanand, Gujarat, which is in partnership with Renesas Electronics America and Stars Microelectronics (Thailand), with a total investment of approximately Rs 7,600 crore.
The FSA 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, according to the IT Ministry.
The project will benefit from 50 per cent fiscal support on a pari-passu basis for the eligible capex from India Semiconductor Mission.
S. Krishnan, Secretary, MeitY, commended CG Power for their effort in deeply understanding the nuances of the sector and their swift progress while emphasising 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.
“The government of India remains committed to providing support at every stage for CG OSAT project,” said Krishnan.
Vellayan Subbiah, Chairman of CG Power, 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 per cent of the global semiconductor design workforce, there is a pressing need for India to foster homegrown brands and intellectual property. Additionally, he emphasised the importance of driving demand alongside building a robust semiconductor supply chain.
Sushil Pal, CEO of India Semiconductor Mission, highlighted CG Power's cooperation and promptness in the process of finalisation of FSA.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor