Murugappa Group Announces Significant 791 Million for Semiconductor Segment

Murugappa Group to Enter Semiconductor Assembly and Testing with $791 Million Investment Plan Over Five Years

The Murugappa Group is poised to enter the realm of semiconductor assembly and testing, outlining a substantial investment of USD 791 million slated for the next five years. CG Power and Industrial Solutions (CGPISL), a segment within the conglomerate, will spearhead this strategic foray into the semiconductor domain.

In pursuit of this initiative, the company has formally submitted an application to the Union Ministry of Electronics and Information Technology (MeiTY) to seek subsidies specifically targeted for establishing an 'outsourced semiconductor assembly and testing' (OSAT) facility within India.

Subject to necessary approvals, the Murugappa Group intends to embark on this venture potentially as a joint venture (JV). Ongoing discussions are focused on identifying suitable technology partners crucial to supporting this endeavor. Funding for this ambitious project will be sourced through a combination of subsidies, contributions from JV partners, equity infusion, and debt financing.

This significant move signifies a deliberate expansion strategy for the Murugappa Group, notably following its acquisition of a controlling stake in Tube Investments (TII), CG Power's parent company, in 2020. Venturing into semiconductor manufacturing underlines the group's commitment to diversification and exploring growth avenues within the technology sector.

News by Rahul Yelligetti