CG Power to build outsourced semiconductor assembly and test facility in three-way JV Chennai: Murugappa group company CG Power and Industrial Solutions (CG) | – Times of India
Chennai: Murugappa group company CG Power and Industrial Solutions (CG), a part of Tube Investments of India along with Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions and Stars Microelectronics (Thailand) Public Co, a Thailand-based outsourced semiconductor assembly and test (OSAT) provider had recently signed an agreement to establish a joint venture to build and operate an OSAT facility in India.
The Union cabinet approved the project under India’s semiconductor scheme on February 29, 2024. CG, with around 86 years of manufacturing expertise, is keen to build semiconductor ecosystem in India. Japan’s Renesas will provide advanced semiconductor technology and expertise. Thai OSAT Stars Microelectronics will provide both technology for legacy packages and training and enablement.
The JV will be 92.3% owned by CG, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest Rs 7,600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required.
The JV will set up a state-of-the-art manufacturing facility in Sanand, Gujarat, with a capacity that will ramp up to 15 million units per day. It will manufacture a wide range of products — ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. The JV will cater to industries such as automotive, consumer, industrial, 5G, to name a few.
S Vellayan, chairman, CG Power and Industrial Solutions Limited, said, “CG’s entry into the 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. We are very keen to build India’s semiconductor capability and ecosystem.”
Hidetoshi Shibata, CEO of Renesas said, “India is a critical part of Renesas’ business. We value its 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 the growing semiconductor demand for the customers worldwide.”
Prompong Chaikul, chairman of executive committee of Stars Microelectronics added, “Leveraging our expertise and experience in OSAT, we are committed to providing robust support to ensure the success of this project in India.”
The Union cabinet approved the project under India’s semiconductor scheme on February 29, 2024. CG, with around 86 years of manufacturing expertise, is keen to build semiconductor ecosystem in India. Japan’s Renesas will provide advanced semiconductor technology and expertise. Thai OSAT Stars Microelectronics will provide both technology for legacy packages and training and enablement.
The JV will be 92.3% owned by CG, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest Rs 7,600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required.
The JV will set up a state-of-the-art manufacturing facility in Sanand, Gujarat, with a capacity that will ramp up to 15 million units per day. It will manufacture a wide range of products — ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. The JV will cater to industries such as automotive, consumer, industrial, 5G, to name a few.
S Vellayan, chairman, CG Power and Industrial Solutions Limited, said, “CG’s entry into the 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. We are very keen to build India’s semiconductor capability and ecosystem.”
Hidetoshi Shibata, CEO of Renesas said, “India is a critical part of Renesas’ business. We value its 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 the growing semiconductor demand for the customers worldwide.”
Prompong Chaikul, chairman of executive committee of Stars Microelectronics added, “Leveraging our expertise and experience in OSAT, we are committed to providing robust support to ensure the success of this project in India.”
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Prime Minister Narendra Modi announced the approval of three semiconductor units in India, aiming to make the country a global hub in semiconductor manufacturing. These units will be established in Dholera, Gujarat; Morigaon, Assam; and Sanand, Gujarat, contributing to India’s semiconductor capabilities.
Prime Minister Narendra Modi announced the approval of three semiconductor units in India, aiming to make the country a global hub in semiconductor manufacturing. These units will be established in Dholera, Gujarat; Morigaon, Assam; and Sanand, Gujarat, contributing to India’s semiconductor capabilities.
