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CG Power and Industrial Solutions Ltd, a subsidiary of the Murugappa Group, has commenced construction for its Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat, with an estimated investment of ?7,000 crore. The company has established a subsidiary, CG Semi Private Ltd, for this joint venture project, obtaining a Certificate of Incorporation from the Ministry of Corporate Affairs, Government of India, last week.
In a filing to stock exchanges, CG Semi Pvt Ltd disclosed that the foundation stone laying ceremony took place in Sanand, Gujarat. Prime Minister Narendra Modi virtually laid the foundation stone, with Gujarat Chief Minister Bhupendra Patel, Minister for Railways, Communications, and Electronics & IT Ashwini Vaishnaw, and Minister of State for Electronics and Information Technology Rajeev Chandrashekhar in attendance.
Vellayan Subbiah, Chairman of CG Power and Industrial Solutions Ltd, emphasized the significance of establishing a semiconductor cluster in India to compete globally, envisioning a world-class OSAT facility at Sanand. Production is slated to commence within the next 2.5 to 3 years.
The OSAT project, formed through a joint venture partnership with Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd, is expected to create employment opportunities for approximately 5,000 individuals.
Spanning across 28 acres of land, the facility will witness an investment of ?7,600 crore over five years. It aims to manufacture a diverse range of products, including legacy packages like QFN (quad flat no-lead) and QFP (quad flat package), along with advanced packages such as FC BGA and FC CSP, catering to sectors like automotive, consumer, industrial, and 5G. The facility is projected to ramp up production to 1.5 crore units per day. |
