Chip foray plan adds $3 billion to Murugappa Group

India’s Murugappa Group added $3 billion in market value Wednesday after one of the conglomerate’s unit announced a foray into semiconductors. The shares of the group’s electric motor maker CG Power and Industrial Solutions Ltd. surged by the 20% limit to a record, prompting similar-sized rallies in two other group stocks, after saying it plans to invest $791 million in a semiconductor assembly and test facility over five years.

The proposal comes against the backdrop of India’s ambition to create a robust tech manufacturing sector that has already drawn investments from Apple Inc. suppliers.