CG Power & Industrial Solutions Ltd has formed a tripartite joint venture to build an operate an OSAT (Outsourced Semiconductor Assembly and Test) facility in India.
In a release, CG said that the joint venture company has been formed with Renesas Electronics Corporation and Stars Microelectronics (Thailand) Public Co. Ltd. CG Power & Industrial Solutions Ltd will be the lead partner.
The JV will be 92.3 per cent owned by CG, with Renesas and Stars Microelectronics each holding equity of approximately 6.8 per cent and 0.9 per cent, respectively.
Japan-headquartered Renesas is a premier supplier of advanced semiconductor solutions while Stars Microelectronics is a a Thailand-based OSAT provider.
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 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 project
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. The JV 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.
The partners
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 will provide advanced semiconductor technology and expertise. Stars Microelectronics will provide both technology for legacy packages and training and enablement.
Strategic diversification
Commenting on this new venture, 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.”
Also read: CG Sees 34 Pc Growth In Q3FY24 Order Book
Featured photograph (source: starsmicro.com) is for representation only.