Discover the groundbreaking collaboration between CG Power, Renesas, and Stars Microelectronics that’s set to revolutionize India’s semiconductor industry. Get the inside scoop on this billion-dollar venture and its potential to reshape the global tech landscape!
CG Power and Industrial Solutions Ventures into Semiconductor Manufacturing
CG Power and Industrial Solutions, a company under the Murugappa Group, has announced a significant venture into semiconductor manufacturing. This move comes through the signing of an agreement with two foreign entities, Renesas and Stars Microelectronics, to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in India. With plans to invest Rs 7,600 crore over the next five years, this endeavor marks a strategic diversification for CG.
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Partnership Details
The agreement involves a joint venture (JV) between CG, Renesas Electronics Corporation from Japan, and Stars Microelectronics (Thailand) Public Co. Ltd. CG Power will hold the majority stake in the JV at 92.3%, while Renesas and Stars Microelectronics will own approximately 6.8% and 0.9% equity capital, respectively. Renesas will contribute advanced semiconductor technology and expertise, while Stars Microelectronics will provide legacy package technology and training.
The JV plans to invest Rs 7,600 crore over five years. This investment will be sourced through a combination of subsidies, equity, and potential bank borrowings. The OSAT manufacturing facility will be located in Sanand, Gujarat, with a production capacity scaling up to 15 million units per day. The facility will produce a wide range of products catering to industries such as automotive, consumer, industrial, and 5G technology.
Significance of the Venture
S. Vellayan, Chairman of CG, views this venture as a strategic move towards diversification. He emphasizes the role of partners Renesas and Stars Microelectronics in facilitating innovation and excellence. Renesas CEO Hidetoshi Shibata highlights India’s importance in their business strategy, aiming to strengthen the semiconductor ecosystem and meet global demand. Prompong Chaikul, Chairman of Stars Microelectronics, expresses commitment to supporting the project’s success in India by leveraging their OSAT expertise.
The collaboration between CG, Renesas, and Stars Microelectronics marks a significant milestone in India’s chip industry. With substantial investments and expertise from global partners, the venture is poised to contribute to India’s technological advancement and meet the growing demand for electronic chip products worldwide.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and PTI have contributed to the above story
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