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Murugappa Firms Target India’s Semiconductor Ecosystem Beyond Chipmaking
India wants to build more than factories that make chips.
It also needs companies that assemble chips, design them, and make the special materials and parts used in chip production.
The article describes two Murugappa Group companies working in these areas.
CG Power has started operations at a chip assembly and testing plant in Gujarat.
Its partner Renesas has committed to taking about half of the planned capacity at two plants.
CG Power is also expanding its chip-design business.
Carborundum Universal makes specialised ceramic parts and high-purity materials used in semiconductor manufacturing.
The company expects this business to grow as customers approve its products and place larger orders.
The article says these opportunities carry growth potential, but the companies’ semiconductor businesses are at different stages of development.
India’s semiconductor market is estimated at about ₹4.2 lakh crore in FY25 and projected to reach ₹9.5 lakh crore by 2030.
The article says the proposed India Semiconductor Mission 2.0 expands support beyond chip manufacturing, with a reported ₹1.27 lakh crore allocation.
CG Power’s subsidiary CG Semi began commercial operations at its G1 assembly and testing plant in Sanand on July 4, 2026; Renesas has committed to about half the combined G1 and G2 capacity.
CG Power is also growing Axiro’s chip-design business, while management expects its semiconductor order backlog to double if execution continues at the current pace.
Carborundum Universal is expanding production of precision ceramics and high-purity silicon carbide for semiconductor equipment, with larger revenue contributions expected from FY28 and a peak around FY30.
- Who
- CG Power and Industrial Solutions and Carborundum Universal, both Murugappa Group companies.
- What
- They are pursuing opportunities in India’s semiconductor value chain through chip assembly, design, ceramics and high-purity materials.
- Where
- India, including CG Semi’s G1 plant in Sanand, Gujarat, and Carborundum Universal’s facility in Hosur, Tamil Nadu.
- When
- CG Semi began G1 commercial operations on July 4, 2026; the article also discusses Q1FY27 results and forecasts for FY28 and FY30.
- Why
- India is developing a broader semiconductor ecosystem, creating potential demand beyond chip fabrication.
Key facts
- India semiconductor market
- Estimated at approximately ₹4.2 lakh crore in FY25; projected to reach about ₹9.5 lakh crore by 2030.
- ISM 1.0
- Launched in December 2021 with a ₹76,000 crore outlay.
- ISM 2.0
- Reported allocation of ₹1.27 lakh crore; the article says its focus extends beyond chip manufacturing.
- CG Semi G1
- The Sanand, Gujarat, OSAT plant began commercial operations on July 4, 2026.
- Renesas commitment
- About 50% of combined capacity at CG Semi’s G1 and G2 plants.
- Carborundum materials
- The company is expanding capacity for 5N-purity high-purity silicon carbide and establishing a pilot facility for 6N-purity material.
- Carborundum revenue outlook
- Management expects semiconductor revenue to scale up from FY28 and reach peak contribution around FY30.
Sources
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