CG Power and Industrial Solutions, a subsidiary of the Murugappa group, has partnered with Renesas Electronics Corporation and Stars Microelectronics to establish a joint venture focused on building and operating an outsourced semiconductor assembly and test (OSAT) facility in India. The project, which has received approval from the Union cabinet under India’s semiconductor scheme, aims to strengthen India’s semiconductor ecosystem.
While CG Power brings its 86 years of manufacturing expertise to the table, Renesas Electronics will provide advanced semiconductor technology and expertise. Stars Microelectronics, a Thailand-based OSAT provider, will contribute technology for legacy packages as well as training and enablement.
Under the joint venture, CG Power will hold a majority ownership stake of 92.3%, with Renesas and Stars Microelectronics holding equity capital of approximately 6.8% and 0.9% respectively. The venture plans to invest Rs 7,600 crore over the next five years, with funding coming from a mix of subsidies, equity, and potential bank borrowings as required.
The state-of-the-art manufacturing facility will be located in Sanand, Gujarat, and will have a capacity of up to 15 million units per day. The facility will produce a wide range of products, including legacy packages such as QFN and QFP, as well as advanced packages like FC BGA and FC CSP. These products will cater to various industries, including automotive, consumer electronics, industrial applications, and 5G technologies.
S Vellayan, chairman of CG Power and Industrial Solutions Limited, expressed his enthusiasm for the project, highlighting the strategic diversification it brings to the company and emphasizing their commitment to building India’s semiconductor capabilities.
The CEO of Renesas, Hidetoshi Shibata, echoed Vellayan’s sentiments and emphasized India’s importance in their business strategy. Renesas aims to leverage India’s innovative landscape and substantial growth potential to address the increasing global demand for semiconductors. The partnership with CG Power and Stars Microelectronics will not only bolster India’s semiconductor ecosystem but also contribute to creating a more robust global supply chain.
Prompong Chaikul, Chairman of the Executive Committee of Stars Microelectronics, reassured their commitment to supporting the success of the project in India. Their expertise and experience in the OSAT sector will provide valuable support and contribute to the overall growth of India’s semiconductor manufacturing capabilities.
The joint venture between CG Power, Renesas Electronics, and Stars Microelectronics is a significant step towards strengthening India’s semiconductor manufacturing sector. By combining their respective strengths and expertise, the partners aim to establish a world-class manufacturing facility that will cater to the growing demand for semiconductors in various industries. This collaboration will not only enhance India’s technological capabilities but also drive innovation, excellence, and job creation in the country.
FAQs:
1. What is the joint venture between CG Power and Renesas Electronics about?
The joint venture is focused on building and operating an outsourced semiconductor assembly and test (OSAT) facility in India. It aims to strengthen India’s semiconductor ecosystem by combining CG Power’s manufacturing expertise, Renesas Electronics’ advanced semiconductor technology, and Stars Microelectronics’ OSAT technology.
2. Who are the partners in this joint venture?
The partners in this joint venture are CG Power and Industrial Solutions (a subsidiary of the Murugappa group), Renesas Electronics Corporation, and Stars Microelectronics.
3. What will be the ownership structure of the joint venture?
CG Power will hold a majority ownership stake of 92.3%, while Renesas and Stars Microelectronics will hold equity capital of approximately 6.8% and 0.9% respectively.
4. Where will the manufacturing facility be located?
The state-of-the-art manufacturing facility will be located in Sanand, Gujarat, India.
5. What will be the capacity of the manufacturing facility?
The facility will have a capacity of up to 15 million units per day.
6. What products will the facility produce?
The facility will produce a wide range of products, including legacy packages such as QFN and QFP, as well as advanced packages like FC BGA and FC CSP. These products will cater to various industries, including automotive, consumer electronics, industrial applications, and 5G technologies.
Definitions:
– Outsourced semiconductor assembly and test (OSAT): OSAT refers to the practice of outsourcing the final stages of semiconductor manufacturing, including assembly and testing, to specialized companies.
– Legacy packages: Legacy packages are older, established types of semiconductor packages that are still in use, such as QFN (Quad Flat No-leads) and QFP (Quad Flat Package).
– FC BGA: FC BGA stands for Flip Chip Ball Grid Array, which is an advanced packaging technology used in semiconductors.
– FC CSP: FC CSP stands for Flip Chip Chip Scale Package, which is another advanced packaging technology used in semiconductors.
Related Links:
– CG Power and Industrial Solutions: Official website of CG Power and Industrial Solutions.
– Renesas Electronics Corporation: Official website of Renesas Electronics Corporation.
– Stars Microelectronics: Official website of Stars Microelectronics.
The source of the article is from the blog tvbzorg.com