CG Power owns a 92.3% stake, while Renesas Electronics and Thai OSAT provider Stars Microelectronics will have 6.8% and 0.9% equity, respectively in the joint venture.
The Union Cabinet gave the nod for an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat by the joint venture (JV) between CG Power and Industrial Solutions Limited (CG), Renesas Electronics, and Stars Microelectronics under India’s Semiconductor scheme.
CG, part of Tube Investments of India Limited and the Murugappa Group, owns 92.3% stake in the venture, while semiconductor solutions provider Renesas and Thailand-based OSAT and electronics manufacturing services (EMS) provider Stars Microelectronics will have about 6.8% and 0.9% equity, respectively. The joint venture plans to invest INR 7,600 crores over five years, using subsidies, equity, and possible bank borrowings.
The high-tech manufacturing facility in Sanand, Gujarat, is aiming for 15 million units per day. From legacy packages like QFN and QFP to advanced ones like FC BGA and FC CSP, the JV is eyeing industries like automotive, consumer, industrial, and 5G.
Vellayan, CG Power and Industrial Solutions Limited Chairman expressed his delight AT this semiconductor move. “CG’s entry into semiconductor manufacturing marks a strategic diversification for us. Our partners, Renesas and Stars Microelectronics will make our learning curves steeper and help us focus on innovation and excellence.
Commenting on the partnership, Renesas’ CEO Hidetoshi Shibata emphasised India’s role in the chip business. “We value India’s innovative landscape and robust potential growth and are committed to accelerating our investment in India. By partnering with the Murugappa Group and Stars Microelectronics, we will bolster India’s semiconductor ecosystem and address growing customer demand worldwide.”
Operating under the Murugappa Group since November 2020, CG has manufacturing plants across 9 Indian locations and one in Sweden for industrial and power systems and is now focusing on growing semiconductor capabilities and an ecosystem in India. Japanese semiconductor player Renesas will provide the venture with advanced semiconductor technology and expertise. Stars Microelectronics will contribute to technology for legacy packages and training and enablement.
