India Semiconductor Mission signs Fiscal Support Agreement with CG Power and CG Semi for Sanand OSAT unit
India Semiconductor Mission, CG Power and Industrial Solutions Ltd and CG Semi Pvt Ltd signed a Fiscal Support Agreement on 17 January 2025 for CG's ₹7,600 crore semiconductor OSAT unit at Sanand, Gujarat.
Summary
India Semiconductor Mission (ISM), CG Power and Industrial Solutions Ltd and CG Semi Pvt Ltd signed a Fiscal Support Agreement (FSA) on 17 January 2025 for CG's semiconductor OSAT (outsourced assembly and test) unit at Sanand, Gujarat. The project, with a total investment of about ₹7,600 crore, is being set up in partnership with Renesas Electronics America and Stars Microelectronics (Thailand) and was approved under the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem. It will receive 50% fiscal support on a pari-passu basis for eligible capital expenditure from ISM. MeitY Secretary S. Krishnan said the Government would support the project at every stage.
Key facts
- Signed
- 17 January 2025
- Parties
- India Semiconductor Mission, CG Power and Industrial Solutions Ltd, CG Semi Pvt Ltd
- Unit
- Semiconductor OSAT, Sanand, Gujarat
- Investment
- About ₹7,600 crore
- Partners
- Renesas Electronics America; Stars Microelectronics (Thailand)
- Support
- 50% fiscal support, pari-passu, on eligible capex
Practice MCQs 2 questions
CG Power's semiconductor OSAT unit, for which a Fiscal Support Agreement was signed on 17 January 2025, is being set up at:
Show answer
Correct answer: B — Sanand, Gujarat
PIB (MeitY): CG Power and Industrial Solutions Ltd is setting up its semiconductor OSAT unit in Sanand, Gujarat.
What share of eligible capital expenditure will India Semiconductor Mission provide as fiscal support to the CG OSAT project (pari-passu basis)?
Show answer
Correct answer: D — 50%
PIB: the project will benefit from 50% fiscal support on a pari-passu basis for the eligible CAPEX from India Semiconductor Mission.