Sanand facility gets fiscal support
To strengthen semiconductor manufacturing in the country, the India Semiconductor Mission has signed a Fiscal Support Agreement (FSA) with CG Power and Industrial Solutions Ltd and CG Semi Pvt Ltd on 17 Jan 2025.
The agreement marking a significant progress in India’s journey to develop a robust semiconductor manufacturing ecosystem, the Ministry of Electronics & IT said.
CG Power and Industrial Solutions Ltd is setting up a Rs.7,600 crore semiconductor OSAT unit in Sanand, Gujarat, in partnership with Renesas Electronics America Inc and Stars Microelectronics (Thailand) Public Co Ltd.
The agreement will see work undertaken through CG’s OSAT facility which was approved under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem https://fieo.org/.
The Project will benefit from 50% fiscal support on a pari-passu basis for the eligible CAPEX from India Semiconductor Mission reflecting commitment of the Government to strengthen India’s position as a key player in the global semiconductor value chain.
CG Power and Industrial Solutions Chairman Vellayan Subbiah 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% of the global semiconductor design workforce, there is a pressing need for India to foster homegrown brands and intellectual property. Additionally, he emphasized the importance of driving demand alongside building a robust semiconductor supply chain https://sbi.com.in/.
The Mission CEO Sushil Pal underlined CG Power’s cooperation and promptness in the process of finalization of FSA.
By fostering high-tech manufacturing and employment opportunities, the Project is set to drive technological advancement and economic growth in the country, and will strengthen India’s position as a trusted partner in establishing an efficient, resilient and sustainable global semiconductor value chain. Fiinews.com
