CG Power and Industrial Solutions Ltd. Chairman Vellayan Subbiah says the company’s entry into semiconductor manufacturing marks a strategic diversification for them.
| Photo Credit: Special Arrangement
CG Power and Industrial Solutions Ltd. (CG) said it would invest ₹7,600 crore over five years in a proposed joint venture (JV) with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics to build and operate an outsourced semiconductor assembly and test (OSAT) facility in India.
The unit would come up at Sanand in Gujarat. The capacity would be ramped up to 15 million units day, the Murugappa Group company said in a statement.
Renesas, a leading semiconductor company, would provide advanced semiconductor technology and expertise and Stars Microelectronics, an OSAT provider, technology for legacy packages, training and enablement.
CG would hold 92.3% stake in the JV followed by Renesas and Stars Microelectronics in the ratio of 6.8% and 0.9%, respectively. The project would be financed through a mix of subsidies, equity, and potential bank borrowings.
The JV will manufacture a wide range of products and cater to industries such as automotive, consumer, industrial and 5G, to name a few.
“CG’s entry into semiconductor manufacturing marks a strategic diversification for us,” said CG Chairman Vellayan Subbiah.
