India Needs to Develop a Broader Semiconductor Ecosystem Over Time

Vellayan Subbiah, a fourth-generation Murugappa group scion and chairman of CG Power, executive vice-chairman of Tube Investments of India (TII), and chairman of Cholamandalam Investment and Finance Co, believes India should take a cue from China and identify key sectors that can drive manufacturing growth. In a video interview with Shine Jacob, he talks about the group's semiconductor foray, the role of electric vehicles (EVs) in the country's future, and the need for a push towards India being a product nation.

- Vellayan Subbiah

You have turned around debt-ridden CG Power. The company is setting up a ₹7,600 crore outsourced semiconductor assembly and test (OSAT) facility in Sanand. What is its status and what is your outlook on the industry?

With regard to the Sanand plant, the first line or the semicommercial line will launch most likely by September. The full line will start functioning by 2027. India needs to develop a broader semiconductor ecosystem. It has three parts—design, fab, and packaging. I think we need to develop a more holistic perspective and should ensure that all three parts develop for India to progress on this front. Government policy with regard to manufacturing has been supportive. We need to think of developing an ecosystem, and zero in on the segments we should get into, and how. That, I think, is a bigger part.

Will the financial trouble of United States-based silicon carbide player Wolfspeed affect your Sanand plans, as your partner Japan's Renesas Electronics is a long-term supplier to them?