Key Points

Calling it a "watershed moment" for India's semiconductor journey, Vellayan Subbiah, Chairman of CG Semi Private Limited, expressed optimism about the country's growing capabilities in chip manufacturing. His remarks came during the inauguration of CG Power's semiconductor assembly and test plant in Sanand.

"I think it's an extremely exciting time for India, right... Because it's a real dream for us to have chips that are basically made here. And it's the first time that it's happening. So I think that it's an extremely exciting time for the country from that perspective. And it's a real watershed moment, think it's a start of something that is going to really mushroom into a very vibrant and kind of flourishing uh ecosystem for semiconductors in the country," Subbiah said.

His remarks came during the inauguration of CG Semi's semiconductor assembly and test plant in Sanand.

Earlier, CG Semi's advanced Outsourced Semiconductor Assembly and Test (OSAT) facility was inaugurated by Union Minister for Information and Technology Ashwini Vaishnaw. OSAT facility is a specialised plant where semiconductor chips are packaged and tested after being manufactured.

Vaishnaw announced that Prime Minister Narendra Modi will "soon" dedicate the country's first chip produced at this facility.

CG Power and Industrial Solutions Ltd set up its semiconductor OSAT unit in Sanand in partnership with Renesas Electronics America Inc. and Stars Microelectronics (Thailand) Public Co. Ltd., with a total investment of approximately Rs 7,600 crore.

The CG Power's Project will benefit from 50 per cent fiscal support on a pari-passu basis for the eligible CAPEX from India Semiconductor Mission, reflecting the commitment of the Government of India to strengthen India's position as a key player in the global semiconductor value chain.

In January, a Fiscal Support Agreement (FSA) was signed by India Semiconductor Mission, CG Power and Industrial Solutions Ltd. and CG Semi Pvt. Ltd, which highlights the government's commitment.

The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in December 2021 with a total outlay of Rs 76,000 crore under the India Semiconductor Mission (ISM).

So far, the Union Government has approved total of 10 projects in six states, with cumulative investments of around Rs 1.60 lakh crore.

Earlier this month, the government approved four more semiconductor projects under the India Semiconductor Mission (ISM), two in Odisha and one each in Andhra Pradesh and Punjab.

These four approved proposals will set up semiconductor manufacturing facilities with a cumulative investment of around Rs 4,600 crore and are expected to generate a cumulative employment of 2034 skilled professionals, which would catalyse the electronic manufacturing ecosystem, resulting in the creation of many indirect jobs.

- ANI