ISM and CG Power Sign Fiscal Support Agreement to Boost Semiconductor Manufacturing
In a major milestone for India’s semiconductor manufacturing efforts, the India Semiconductor Mission (ISM) signed a Fiscal Support Agreement (FSA) with CG Power and Industrial Solutions Ltd. and CG Semi Pvt. Ltd. on January 17, 2025. This agreement marks significant progress in developing India’s semiconductor ecosystem, specifically for CG’s Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The project, with a total investment of ₹7,600 crore, is backed by global partnerships with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd.
The project will receive 50% fiscal support on eligible capital expenditure from ISM, aligning with the Indian Government’s vision to strengthen the country’s position in the global semiconductor supply chain. S. Krishnan, Secretary, MeitY, reaffirmed the government’s commitment to supporting the project through every stage of its development.
This initiative is set to drive technological innovation, foster economic growth, and create employment opportunities. Vellayan Subbiah, Chairman of CG Power, emphasized the need for India to nurture homegrown semiconductor brands and intellectual property. The collaboration will contribute to India’s target of $500 billion in electronics production by 2030, enhancing its role in the global electronics value chain.
Source: PIB
