India's Chip Ambitions: Beyond Manufacturing

India's semiconductor market is set for substantial expansion, with projections indicating a rise to approximately ₹9.5 lakh crore by 2030. Building on previous initiatives, the government's India Semiconductor Mission 2.0 now broadens its focus to encompass the entire value chain, not solely chip manufacturing. This enhanced policy aims to cultivate a robust semiconductor ecosystem within the nation.

Two prominent Murugappa Group companies are positioned to capitalize on this growth. CG Power and Industrial Solutions is venturing into semiconductor assembly and testing, with its G1 OSAT plant in Sanand, Gujarat, commencing commercial operations on July 4, 2026. The company is also developing its design business, Axiro, to expand into power electronics.

Carborundum Universal, a leader in materials science, is strengthening its role in the semiconductor supply chain. It is expanding its capacity for high-purity silicon carbide and producing precision ceramic components essential for semiconductor wafer fabrication equipment. The company anticipates significant revenue growth from this segment starting in FY28, with peak contributions expected around FY30.