CG Power JV with Industrial Solutions to invest Rs 7600 Cr in Gujarat semiconductor facility

AHMEDABAD : CG Power and Industrial Solutions along with its joint venture (JV) partners will invest Rs 7,600 crore over five years to set up a semiconductor facility in Sanand, Gujarat.

The facility will be financed through a mix of subsidies, equity and potential bank borrowings as required, said the company in a statement.

CG Power will build an utsourced semiconductor assembly and test (OSAT) facility in partnership with Renesas Electronics Corporation, a supplier of semiconductor solutions, and Stars Microelectronics, a Thailand-based supplier of OSAT technology.

The Union Cabinet on Thursday approved the JV project under India’s semiconductor manufacturing subsidy scheme. The JV will be 92.3 per cent owned by CG and Renesas and Stars Microelectronics will each hold equity capital of approximately 6.8 per cent and 0.9 per cent, said the statement. The facility in Sanand will have a capacity of 15 million units per day.