CG Power Reaffirms Commitment to JV Project, Dispels Concerns Over Wolfspeed Turmoil

Image Source: Autocar Professional

CG Power and Industrial Solutions Ltd has issued a detailed clarification regarding recent news reports about the potential impact of Wolfspeed’s financial troubles on its semiconductor joint venture (JV) project. The company has confirmed its unwavering support for the JV and assured stakeholders that the Wolfspeed situation will not disrupt the operations or future plans of CG SEMI.

Key Highlights:

CG Power and Industrial Solutions is proceeding with its Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, in partnership with Renesas Electronics and Stars Microelectronics, with a total investment of ₹7,600 crore.
Recent reports highlighted concerns over Wolfspeed, a key silicon carbide (SiC) wafer supplier to Renesas, facing possible bankruptcy, which could create supply chain disruptions and financial strain for Renesas, a minority partner in the CG Power JV.
CG Power has clarified that while Wolfspeed’s situation may cause temporary headwinds for global semiconductor supply chains, it will not impact the operational timeline or strategic objectives of the CG SEMI project.

The company emphasized that the JV is backed by strong government support, including a 50% fiscal incentive under India’s semiconductor manufacturing scheme, and has robust plans for technology and demand diversification.

The OSAT facility remains on track, with pilot production expected by mid-2026 and full-scale operations by FY27, targeting a capacity of up to 15 million units per day for multiple end-use sectors.

CG Power has directly addressed inaccuracies in recent media coverage, reiterating that its majority stake and multi-partner structure provide resilience against external supplier disruptions.

The management remains confident in the project’s prospects and its role in advancing India’s semiconductor ecosystem, assuring all stakeholders of continued progress and transparency.

Source: Economic Times, Moneycontrol, PIB Press Release