CG Power and Industrial Solutions Ltd. and CG Semi Pvt. Ltd. signed a Fiscal Support Agreement (FSA) under India Semiconductor Mission (ISM) on January 17, 2025. This agreement is a major step for the ₹7600 crore semiconductor OSAT (Outsourced Semiconductor Assembly and Test) project approved under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem. The facility will be set up in Sanand, Gujarat in collaboration with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd.
The Government of India has promised 50% fiscal support for eligible capital expenditure on a pari-passu basis under the agreement. Speaking at the event, the Secretary of MeitY, S. Krishnan highlighted the government’s commitment to supporting the project at every stage. He appreciated CG Power’s deep understanding of the sector and their efforts to build a strong foundation for domestic intellectual property. This project also supports India’s broader goal of reaching $500 billion in electronics production by 2030.
Chairman of CG Power, Vellayan Subbiah said that the FSA is a key milestone in India’s journey toward becoming self-reliant in semiconductor manufacturing. He highlighted the need to promote Indian semiconductor brands and strengthen the supply chain. CEO of ISM, Sushil Pal praised CG Power’s cooperation during the agreement finalization. The project is expected to create high-tech jobs and drive economic growth, reinforcing India’s position in the global semiconductor value chain.
