Murugappa Group Transitions from Bicycles to Semiconductor Chips in Gujarat
Murugappa Group Transitions from Bicycles to Semiconductor Chips in Gujarat
IN · Published Jul 30, 2026
The Murugappa Group, originally known for its Hercules bicycle brand launched in 1951, has entered the semiconductor industry with a new facility in Sanand, Gujarat.
On July 4, 2026, Prime Minister Narendra Modi inaugurated the commercial production of semiconductor chips at the plant, which is operated by CG Semi, a joint venture involving Japan's Renesas Electronics and Thailand's Star Microelectronics.

Impact & Risks

The facility is expected to bolster India's semiconductor manufacturing capabilities, reducing reliance on imports and supporting the country's technological ambitions. The focus on employing and training women from across India highlights a commitment to workforce diversity and empowerment. However, the success of the venture depends on maintaining high production standards and meeting global demand, which could be challenging in a competitive market.

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