CG Power Seeks Approval for Semiconductor Facility

it intends to invest $791 million over the course of five years to establish an Outsourced Semiconductor Assembly and Test (OSAT)

Mumbai- CG Power and Industrial Solutions Ltd., (CGPISL) an multinational company, declared that it intends to invest $791 million over the course of five years to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in collaboration with technology vendors.

The Murugappa Group company announced in a regulatory filing that it has submitted an application to the Ministry of Electronics and Information Technology (MeitY) in order to obtain approval for the project and a subsidy.

Following approval for the project and funding from the Center, CGPISL suggests implementing the project as a joint venture with technology providers/anchor customers.

The idea is now being discussed, the company stated, adding that it anticipated raising the money through debt, equity contributions from joint venture partners, and subsidies.

In order to establish compound semiconductors, silicon photonics, sensors, discrete semiconductors, and semiconductor Assembly, Testing, Marking, and Packaging (ATMP)/Outsourced Semiconductor Assembly and Test (OSAT) facilities in India, CGPISL has submitted an application for the project under the modified scheme.

In November 2020, cash-strapped CG Power was acquired by Tube Investments. The company's two business segments—power systems and industrial systems—offer goods, services, and solutions.