Semiconductor Mission And CG Power Signs Fiscal Support Agreement For OSAT Facility


(MENAFN- KNN India) New Delhi, Jan 18 (KNN)
In a landmark development for India's semiconductor ecosystem, the India Semiconductor Mission (ISM), CG Power and Industrial Solutions Ltd., and CG Semi Pvt. Ltd. signed a Fiscal Support Agreement (FSA) on Friday.

This milestone marks a significant step in India's journey to becoming a global hub for semiconductor manufacturing, reinforcing the country's commitment to technological innovation and economic progress.

The agreement supports CG Power's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

Developed in collaboration with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., the Rs 7,600 crore project will receive 50 per cent fiscal support on a pari-passu basis for eligible capital expenditure under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem.

Speaking at the signing, the Secretary of the ISM highlighted the government's unwavering support for the project, emphasising its role in strengthening India's position in the global semiconductor value chain.

Commending CG Power's dedication to understanding the sector's intricacies and executing swift progress, he expressed confidence in the company's ability to drive innovation and contribute significantly to India's target of USD 500 billion in electronics production by 2030.

Vellayan Subbiah, Chairman of CG Power, celebrated the FSA as a pivotal moment for India's semiconductor ambitions.

He noted the nation's global prominence in semiconductor design, with Indians comprising nearly 20 per cent of the workforce, and stressed the need for homegrown brands and intellectual property.

Subbiah also underlined the importance of creating domestic demand and a resilient supply chain.

Sushil Pal, CEO of ISM, lauded CG Power's collaboration and diligence, underscoring the shared vision of positioning India as a trusted player in the global semiconductor industry.

With high-tech manufacturing, job creation, and technological advancements, this project is set to strengthen India's economic growth and bolster its role in the global semiconductor value chain.

The FSA signing reflects India's resolute strides toward self-reliance and global competitiveness in semiconductors.

(KNN Bureau)

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