It will only hold around 6.8% of the equity capital, with the bulk going to Mumbai engineering conglomerate CG Power and Industrial Solutions. Thailand OSAT provider Stars Microelectronics will hold 0.9%.
“CG’s entry into the semiconductor manufacturing marks a strategic diversification for us,” said CG chairman S Vellayan (pictured). “Our partners Renesas and Stars Microelectronics will make our learning curves steeper and help us focus on innovation and excellence.”
“India is a critical part of Renesas’ business,” said Renesas CEO Hidetoshi Shibata. “We value its innovative landscape and potential growth, and are committed to accelerating our investment in India.”
Capacity will ramp up to 15 million units per day, said Renesas, manufacturing packages including flip-chip BGA, flip-chip chip-scale, QFN and QFP – for industries such as automotive, consumer, industrial and 5G.
CG manufactures traction motors, propulsion systems and signaling relays for the Indian Railways; induction motors, drives, transformers and switchgear for industry; and fans, pumps and water heaters for consumer appliances. It manufactures at nine locations in India and one in Sweden, and became past of the Murugappa Group in 2020.
Stars Microelectronics also provides EMS (electronics manufacturing services).