Murugappa Group company has announced its intentions to enter the semiconductor assembly and testing industry With a project worth Rs 6,500 crore.

The government has received an application from Mumbai-based CG Power and Industrial Solutions, which Tube Investments acquired in 2020, to establish an outsourced semiconductor assembly and test facility (OSAT) with a proposed investment of approximately $791 million (roughly Rs 6,500 crore) spread over five years.

The proposed project relates to setting up of semiconductor Assembly, Testing, Marking and Packaging (ATMP) units in India in the form of a joint venture in partnership with technology providers, which are still under discussion.

CG Power has sought Ministry of Electronics and Information Technology (MeiTY) approvals to set up the facility and is also seeking subsidies for the project.