All you need to know about CG Power's ₹7,600 crore chip facility approved by govt
₹7,600 crore (or $222 million) semiconductor facility in Sanand, Gujarat, as part of India's chip push. The Union Cabinet on February 29 approved the establishment of three semiconductor plants with a combined investment of ₹1.26 lakh crore. To encourage domestic manufacturing of semiconductors, the government is also offering incentives amounting to ₹76,000 crore.
The construction of these semiconductor plants is set to commence within the next 100 days, Minister for Electronics and IT, Ashwini Vaishnaw said during a press briefing after the cabinet meeting. While the first two approvals were for different units of the Tata Group, the third was for Murugappa Group-owned CG Power. CG Power and Industrial Solutions will form a joint venture (JV) with an arm of chip specialist Renesas Electronics Corp, and Stars Microelectronics for a ₹7,600 crore facility in Sanand, Gujarat.
The JV plans to invest the ₹7,600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required, it said in a statement. Renesas, a leading semiconductor company headquartered in Japan, will provide advanced semiconductor technology and expertise. Stars Microelectronics will provide both technology for legacy packages and training and enablement, CG Power said in a release.
The proposed plant in Sanand is anticipated to have a daily capacity of 15 million chips. The focus of CG Power's semiconductor unit will be on manufacturing chips catering to consumer, industrial, automotive, and power applications. The JV aims to create an outsourced semiconductor assembly and testing (OSAT) facility, responsible for packaging, assembling, and testing foundry-made silicon wafers to produce
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