Murugappa Group's semiconductor company CG Semi Pvt Ltd, an Industrial conglomerate will reportedly start manufacturing in its factory based in Gujarat within 2.5 to 3 years. The news became official when a top player of its parent company released a statement.
In a statement, S. Vellayan, Chairman of CG Power and Industrial Solutions Ltd, the parent of CG Semi, said, "We are very keen to establish India’s semiconductor ecosystem and plan to build a world-class OSAT (outsourced semiconductor assembly and testing) facility at Sanand. We intend to commence production in the next 2.5 to 3 years.”
He further added, "For India to become a truly global player in the semiconductor space, it is critical that we build a semiconductor cluster in a concentrated location similar to global leaders such as Taiwan. With a few facilities already announced in Gujarat, there are early signs of the state emerging as this cluster.”
PM Narendra Modi laid the foundation stone for the CG Semi’s factory at Sanand, virtually on Wednesday (March 13). This facility will be set up in a land area of 28 acres with an investment of Rs 7,600 crore, which will spread over 5 years.
This facility will manufacture a wide array of products catering to industries such as automotive, consumer, industrial, 5G, and others with a capacity to ramp up production to 1.5 crore units per day.
CG Semi is a three-way joint venture between CG Power (92.34 per cent stake), Renesas Electronics Corporation (6.76 per cent), and Stars Microelectronics (Thailand) Public Co. Ltd (0.90 per cent).
As per the agreement, CG Power, Renesas and Stars are to subscribe in one or more tranches, subject to satisfaction of conditions precedent up to USD 205 million, USD 15 million, and USD 2 million, respectively, towards equity capital of CG Semi, it was announced earlier.
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Inputs from IANS
