News Brief
Murugappa Group's CG Power Announces Plan To Set Up Semiconductor Assembly Plant, Earmarks $791 Million Investment
Mumbai-based CG Power disclosed plans to establish an outsourced semiconductor assembly and test facility in India.
The shares of CG Power and Industrial Solutions, a Murugappa Group company, experienced a significant 20 per cent surge, reaching Rs 469, following the company's announcement to venture into semiconductor assembly.
Acquired by Tube Investments in 2020, a Murugappa Group company, Mumbai-based CG Power disclosed plans to establish an outsourced semiconductor assembly and test facility (OSAT) in India, earmarking an estimated investment of $791 million (Rs 6,600 crore) over the next five years.
As reported by The Times Of India, In a disclosure to the exchanges, CG Power revealed its application for approvals from the Ministry of Electronics and Information Technology for the OSAT facility, seeking subsidies for the ambitious project.
The proposed investment structure involves a blend of subsidy, joint venture partners' equity contribution, and debt.
The initiative focuses on creating semiconductor assembly, testing, marking, and packaging and outsourced semiconductor assembly and test units in India.
Pending approvals, the company is contemplating executing the project as a joint venture, with ongoing discussions with potential technology partners.
While specific details about the project, such as the facility's location and the rationale behind entering a new non-core segment, were not disclosed, Murugappa Group, traditionally known for its presence in the power, industrial, and logistics sectors, also remains tight-lipped.
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