Archive · 31 Jul 2026
India’s ISM 2.0 Spurs CG Power and Carborundum Growth
India wants to make its own computer chips, so the government gave a big money boost called ISM 2.0.
Two companies in the Murugappa Group are getting ready to help.
CG Power built a plant in Sanand that puts chips together and will work with a Japanese company Renesas.
Carborundum Universal is making special ceramic parts that chip makers need.
They will start making them in 2027 and hope to earn money by 2029.
CG Power’s profits grew a lot in the first quarter of 2027, showing the plan is working.
India’s semiconductor market is expected to grow from ₹4.2 lakh crore in FY25 to ₹9.5 lakh crore by 2030.
ISM 2.0 allocated ₹1.27 lakh crore, expanding support to design, packaging, equipment, and materials.
CG Power’s CG Semi began commercial production at its G1 OSAT plant in Sanand, Gujarat, with Renesas taking about 50% of capacity.
Carborundum Universal is building a ₹66 crore plant for advanced ceramic components for wafer fabrication, aiming to supply serially from FY27.
CG Power’s Q1FY27 EBITDA rose 17% to ₹481 crore, revenue 14% to ₹3,281 crore, while semiconductor operations added ₹43 crore to consolidated margin.
- Who
- CG Power, Carborundum Universal, Murugappa Group, Indian government
- What
- Expansion of India’s semiconductor ecosystem under ISM 2.0 and company positioning
- When
- July 2026 for CG Semi G1 launch; FY27–FY29 for Carborundum supply and revenue
- Where
- India, Sanand in Gujarat
- Why
- To capture growth in a market projected to double by 2030
- India semiconductor market FY25
- ₹4.2 lakh crore
- Projected market FY2030
- ₹9.5 lakh crore
- ISM 2.0 allocation
- ₹1.27 lakh crore
- CG Semi G1 offtake by Renesas
- ≈50%
- Carborundum FY27 supply start
- serial production