CHENNAI: The Chennai-based Murugappa Group on Wednesday announced that it will invest $791 million over five years to foray into semiconductor assembly and testing space.
The group’s foray into semiconductors would be through CG Power and Industrial Solutions. It plans a joint venture in partnership with technology providers or anchor customers for the project, the company said in exchange filings. The project is expected to be funded by a combination of subsidy, JV partners equity contribution and debt, as required.
The company is in discussion for the JV. It has sought subsidy with the Ministry of Electronics and Information Technology (MeitY) for subsidy for the project under the Modified scheme for setting up of compound semiconductors/silicon photonics/sensors fab/ discrete semiconductors fab and semiconductor assembly, testing, marking and packaging (ATMP)/ outsourced semiconductor assembly and test (OSAT) facilities in India.
The share price of CG Power surged by about 20%to Rs 469 after the announcement.