CG Power kicks off construction work for semiconductor unit in Gujarat

Murugappa Group firm CG Power and Industrial Solutions Ltd has kicked off the construction work for its ₹7,000 crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat.

The company has formed a subsidiary, CG Semi Private Ltd, for the above JV project, having obtained a Certificate of Incorporation from the Ministry of Corporate Affairs, Government of India, last week.

CG Semi Pvt Ltd, a subsidiary of CG Power and Industrial Solutions Ltd, has performed the foundation stone laying ceremony in Sanand, Gujarat, the company said in a filing to stock exchanges.

The foundation stone was virtually laid by Prime Minister Narendra Modi in the presence of Bhupendra Patel, Chief Minister, Gujarat, Ashwini Vaishnaw, Minister for Railways, Communications, and Electronics & IT, Government of India and Rajeev Chandrashekhar, Minister of State, Ministry of Electronics and Information Technology, and Skill Development & Entrepreneurship and Jal Shakti, Government of India.

“For India to become a truly global player in the semiconductor space, we must build a semiconductor cluster in a concentrated location similar to global leaders such as Taiwan. We are very keen to establish India’s semiconductor ecosystem and plan to build a world-class OSAT facility at Sanand. We intend to commence production in the next 2.5 to 3 years,” said Vellayan Subbiah, Chairman, CG Power and Industrial Solutions Ltd.

The OSAT project is being set up by CG Power and Industrial Solutions Ltd through a joint venture partnership with Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd.

The factory will generate employment for about 5,000 people.

This facility will be set up on a land area of around 28 acres, and an investment of ₹7,600 crore will be spread over five years.

The factory will manufacture a wide array of products – ranging from legacy packages such as QFN (quad flat no-lead) and QFP (quad flat package) to advanced packages such as FC BGA and FC CSP, which will cater to industries such as automotive, consumer, industrial and 5G among others with a capacity to ramp up production to 1.5 crore units per day, it said.

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