CG Power gets Cabinet nod to setup Semiconductor unit
Upstox
2 min read • Updated: February 29, 2024, 5:02 PM
Summary
CG Power unit is expected to start construction within the next 100 days of cabinet approval. Today, shares of CG Power and Industrial Solutions closed 4.4% higher today, with a day high of ₹449 per share.
CG Power, in joint venture with Renesas Electronics (Japan) and Stars Microelectronics (Thailand), has received the Union Cabinet’s approval to establish a specialised chip manufacturing facility in Sanand, Gujarat.
The unit is expected to start construction within the next 100 days and will eventually produce chips for consumer, industrial, automotive and power applications.
The project entails an investment of ₹7,600 crore and will have a capacity of 15 million chips per day. The technology partner Renesas Electronics will bring expertise in specialised microcontrollers, analog, power and System-on-chip (SoC) products. The JV will get technology know-how and technical support from Stars Microelectronics.
Read more: In a big leap for semiconductor industry, Union Cabinet approves three more units
In addition to the above, two other companies from the Tata Group, Tata Electronics Pvt. Ltd and Tata Semiconductor Assembly and Test Pvt Ltd, have received approvals to set up semiconductor fab and semiconductor ATMP (Assembly, Testing, Marking, and Packaging) units, respectively.
As per the government press release, these units are expected to generate direct employment of 20 thousand advanced technology jobs and about 60 thousand indirect jobs.
This announcement marks another milestone for the government's Development of Semiconductors and Display Manufacturing Ecosystems programme in India.
Today, shares of CG Power and Industrial Solutions closed 4.4% higher today, with a day high of ₹449 per share.