CG Power and Industrial Solutions Limited (CG), Renesas Electronics Corporation, and

Stars Microelectronics (Thailand) Public Co. Ltd have recently signed a joint venture agreement. Particularly, they agree to build and operate an OSAT facility in India.

Most importantly, India’s Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the project of the JV under India’s Semiconductor scheme.

The JV brings together the 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. Moreover, Renesas, as a leading semiconductor company headquartered in Japan, will provide advanced semiconductor technology and expertise. On the other hand, Stars Microelectronics, a Thai-based OSAT, will provide both technology for legacy packages and training and enablement.

CG will take the majority stake of the JV at 92.3% while Renesas and Stars Microelectronics will have a holding capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest INR 7,600 crores (US$917,000 approximately) over a five-year period. The financing will come through a mix of subsidies, equity, and potential bank borrowings as required.

Advanced Manufacturing Facility

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. Particularly, 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.

Commenting on this new venture, Mr. 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.”

On the other hand, Mr. 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.”

Meanwhile, Mr. 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. (Also, we will) address the growing semiconductor demand for the customers worldwide.”

Prompong Chaikul, Chairman of Executive Committee of Stars Microelectronics (Thailand) Public Co., Ltd added, “Leveraging our expertise and experience in OSAT, we commit to provide robust support to ensure the success of this project in India.”