As a boost to the ongoing ₹76 billion OSAT project in Gujarat, India Semiconductor Mission, CG Power, and CG Semi signed a fiscal support agreement, which will offer almost 50% assistance.
On Friday, a fiscal support agreement (FSA) was signed between the India Semiconductor Mission (ISM), CG Power and Industrial Solutions Ltd, and CG Semi Pvt Ltd. This agreement is part of India’s strategy to bolster its semiconductor production, particularly through CG’s OSAT (outsourced semiconductor assembly and test) facility, which was approved under the ‘Modified Programme for the Development of Semiconductor and Display Manufacturing Ecosystem.’
With the FAS, the government will offer 50% fiscal support on a pari-passu basis for eligible capital expenditure under the ISM initiative. CG Power is establishing the OSAT unit in Sanand, Gujarat, in collaboration with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., with a total investment of ₹76 billion.
According to a press release issued by the government, the project is set to foster technological growth and economic opportunities, strengthening India’s position in the global semiconductor supply chain.
S. Krishnan, the secretary of the Ministry of Electronics and Information Technology (MeitY), expressed the government’s ongoing support for the project, emphasising the importance of domestic intellectual property and market development.
He also acknowledged CG Power’s potential and progress in the sector, believing the company will play a vital role in India’s electronics value chain and contribute to the nation’s target of achieving $500 billion in electronics production by 2030.
Vellayan Subbiah, Chairman of CG Power, noted that the FSA marks a critical step toward India’s self-reliance in semiconductor manufacturing and design. He highlighted the need for India to foster homegrown brands and intellectual property while also stimulating demand for semiconductors.
Among the other dignitaries who were present at the signing event, Sushil Pal, CEO of the ISM, concluded the ceremony, thanking CG Power for their swift cooperation in finalising the agreement.
