ISM, CG Power, and CSPL Sign Fiscal Assistance Agreement.
MOUs and Agreement
In January 2025, the India Semiconductor Mission (ISM), CG Power and Industrial Solutions Limited (CG Power), and CG Semi Private Limited (CSPL) signed a Fiscal Support Agreement (FSA) to bolster India’s semiconductor manufacturing ecosystem. The agreement will support CG Power’s Outsourced Semiconductor Assembly and Test (OSAT) facility, approved under the Modified Programme for the Development of Semiconductor and Display Manufacturing Ecosystem.
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- CG Power will set up its semiconductor OSAT unit in Sanand, Gujarat, with a partnership involving Renesas Electronics America Inc. and Stars Microelectronics, investing Rs 7,600 crore.
- The India Semiconductor Mission (ISM) will provide 50% fiscal support for the eligible capital expenditures (CAPEX) of the project, showcasing the Government of India’s commitment to strengthening India’s role in the global semiconductor value chain.
- This initiative aligns with India’s target of reaching USD 500 billion in electronics production by 2030, a significant step towards realizing the country’s vision.
Main Point :- (i) CG Power’s semiconductor project will boost India’s global electronics presence, supported by the India Semiconductor Mission (ISM), launched in 2021 with a Rs 76,000 crore outlay under the Ministry of Electronics and Information Technology (Meity).
(ii) ISM is set up as an Independent Business Division within Digital India Corporation (DIC), aimed at encouraging investment in semiconductor and display manufacturing.
(iii) Four key schemes are part of ISM, including those for setting up semiconductor fabs, display fabs, compound semiconductors, and semiconductor assembly, testing, marking, and packaging (ATMP)/OSAT facilities.
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