New Delhi: CG Power and Industrial Solutions Limited, a part of Tube Investments of India Limited and the Murugappa Group; Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions; and Stars Microelectronics (Thailand) Public Co. Ltd, a Thailand-based Outsourced Semiconductor Assembly and Test (OSAT) provider; recently agreed to establish a Joint Venture (JV) to build and operate an OSAT facility in Sanand, Gujarat.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the project of the JV under India’s Semiconductor scheme on February 29, 2024. The JV plans to invest INR 7,600 crore in five years. The project will be financed through a mix of subsidies, equity, and potential bank borrowings as required, a press release said.
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 brings together unique capabilities of the partners with a vision to “Make in India for the World.” CG, with around 86 years of manufacturing expertise, is keen to build semiconductor capabilities and ecosystem in India. Renesas, a leading semiconductor company headquartered in Japan, will provide advanced semiconductor technology and expertise. Stars Microelectronics, a Thai based OSAT, will provide both technology for legacy packages and training and enablement.
The OSAT manufacturing facility in Sanand will have a capacity of up to 15 million units per day. The JV will manufacture a wide range of products – from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP, and 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. This is a very exciting phase for the entire nation, and we are very keen to build out India’s semiconductor capability and ecosystem.”
Natarajan Srinivasan, Managing Director, CG Power and Industrial Solutions Limited, added, “It is a matter of great pride for CG to implement this project of National importance.”
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 (Thailand) Public Co., Ltd, added, “We are deeply honoured to join forces in this thrilling venture. Leveraging our expertise and experience in OSAT, we are committed to providing robust support to ensure the success of this project in India.”
