CG Power share price jumps 7% on Cabinet nod for semiconductor unit

Shares of CG Power surged 7% after the Union Cabinet of India gave a nod for setting up a semiconductor unit for specialised chips at an outlay of Rs 7,600 crore.

The government is offering incentives of up to Rs 76,000 crore to boost domestic semiconductor manufacturing, crucial components of electronic devices used in mobile phones, laptops, refrigerators, washing machines, automobiles, and more.

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Among the proposals was CG Power’s partnership with Renesas Electronics Corp and Stars Microelectronics of Thailand to establish a unit in Sanand, Gujarat, with an investment of Rs 7,600 crore. Renesas, a leading semiconductor company, focuses on specialized chips and operates 12 semiconductor facilities, playing a key role in microcontrollers, analog, power, and system-on-chip products.

The planned plant will have a capacity for producing 15 million chips per day, and CG Power’s semiconductor unit will manufacture chips for consumer, industrial, automotive, and power applications. Collectively, the three proposals entail investments worth over Rs 1.26 lakh crore.

Murugappa Group’s CG Power and Industrial Solutions Ltd received approval from the Union Cabinet to set up a semiconductor unit for specialized chips with an outlay of Rs 7,600 crore.

As of 9:15 am, the shares were trading 7% higher on NSE at 472.50.