India's Chip Ambitions: Beyond Announcements

India's semiconductor market is on a rapid growth trajectory, with projections indicating it will reach approximately ₹9.5 lakh crore by 2030.

The government's commitment is evident through the India Semiconductor Mission (ISM) 2.0, which boasts a substantial ₹1.27 lakh crore allocation. This initiative broadens support beyond chip fabrication to encompass the entire semiconductor ecosystem.

CG Power is directly participating through its subsidiaries CG Semi and Axiro Semiconductor. CG Semi operates OSAT facilities, commencing commercial production at its G1 facility in Sanand, Gujarat, on July 4, 2026. Axiro focuses on chip design for RF and satcom applications, with plans to expand into power electronics.

Carborundum Universal, another Murugappa Group entity, is indirectly involved by producing advanced structural ceramic components for semiconductor wafer fabrication equipment. The company commissioned a dedicated plant in H1FY26 and expects substantial revenue generation from this segment to begin around FY29.

These strategic moves by CG Power and Carborundum Universal position them to capitalize on India's expanding semiconductor value chain, benefiting from both government initiatives and growing industry demand.