In a major step towards strengthening India’s semiconductor manufacturing base, Murugappa Group firm CG Power and Industrial Solutions Ltd. has joined hands with Japan’s Renesas Electronics Corporation and Thailand’s Stars Microelectronics to set up an Outsourced Semiconductor Assembly and Test (OSAT) plant in Sanand, Gujarat. The joint venture (JV) plans to launch its first chip from a pilot production line by mid-2026, said Renesas CEO Hidetoshi Shibata.
The JV will invest ₹7,600 crore in five years, funded by a combination of subsidies, equity, and possible borrowings from banks.
CG Power will have a 92.3% shareholding, while Renesas and Stars Microelectronics will have about 6.8% and 0.9%, respectively.
The Sanand plant is set to build up to a capacity of 15 million units a day, manufacturing various semiconductor packages. These comprise traditional packages such as Quad Flat No-Lead (QFN) and Quad Flat Package (QFP), and newer packages such as Flip Chip Ball Grid Array (FC BGA) and Flip Chip Scale Package (FC CSP). The offerings will serve different sectors, including automotive, consumer electronics, industrial, and 5G technology. This initiative aligns with India’s broader strategy to enhance its semiconductor ecosystem and reduce dependence on imports. The Union Cabinet approved the project under India’s Semiconductor scheme on February 29, 2024.
“Renesas CEO Hidetoshi Shibata emphasized that India must focus on building its intellectual property (IP) to boost its competitiveness in the international semiconductor industry.”
Conclusion:
The partnership combines the manufacturing experience of CG Power, Renesas’s cutting-edge semiconductor technology, and Stars Microelectronics’ knowledge in legacy package technology as well as training. As India further develops its semiconductor expertise, the joint venture represents a turning point towards making the nation a leader in the manufacture of chips worldwide. The partnership between Renesas, CG Power and Stars Microelectronics creates the potential for innovation, economic development and technological advancement in India’s semiconductor industry.
