Synopsis
On January 17, the India Semiconductor Mission signed a Fiscal Support Agreement with CG Power and CG Semi, aiming to enhance the semiconductor manufacturing ecosystem in India. The collaboration involves significant investments and aims to foster domestic production and intellectual property.Key Takeaways
- India Semiconductor Mission signs FSA with CG Power and CG Semi.
- Investment of approximately Rs 7,600 crore for OSAT facility in Gujarat.
- 50% fiscal support from the India Semiconductor Mission.
- Focus on boosting domestic intellectual property.
- Goal of achieving $500 billion electronics production by 2030.
New Delhi, Jan 17 (NationPress) The India Semiconductor Mission (ISM) has entered into a Fiscal Support Agreement (FSA) with CG Power and CG Semi to bolster the nation's semiconductor manufacturing framework.
CG Power is establishing its semiconductor OSAT facility in Sanand, Gujarat, in collaboration with Renesas Electronics America and Stars Microelectronics (Thailand), with a total investment nearing Rs 7,600 crore.
This FSA represents a significant milestone in India's ambition to enhance its semiconductor production capabilities through CG’s OSAT unit, which received approval under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem, as stated by the IT Ministry.
The initiative will receive 50 percent fiscal support on a pari-passu basis for the eligible capital expenditure from the India Semiconductor Mission.
S. Krishnan, Secretary of MeitY, praised CG Power for its thorough comprehension of the sector and its rapid advancements, while stressing the importance of domestic intellectual property and market expansion.
He expressed his belief that CG Power will assume multiple critical roles within the electronics value chain in the future and will play a vital part in achieving India's ambitious $500 billion electronics production goal by 2030.
“The Government of India is dedicated to supporting the CG OSAT project at every phase,” Krishnan remarked.
Vellayan Subbiah, Chairman of CG Power, stated that the signing of the FSA is a landmark event for India’s semiconductor sector, marking a crucial step towards self-sufficiency in manufacturing and design.
He pointed out that while Indians make up nearly 20 percent of the global semiconductor design workforce, there is an urgent need for India to nurture indigenous brands and intellectual property. Furthermore, he underscored the necessity of fostering demand while simultaneously establishing a strong semiconductor supply chain.
Sushil Pal, CEO of India Semiconductor Mission, commended CG Power for its collaboration and promptness in finalizing the FSA.
