Renesas Joins OSAT JV in India

Renesas Electronics, a prominent player in the semiconductor industry, is part of a consortium that is set to establish an outsourced semiconductor assembly and test (OSAT) facility in Sanand, near Ahmedabad in Gujarat, India. This strategic move is aimed at expanding the consortium's presence in the region and tapping into the growing demand for semiconductor solutions.

The equity capital for the project will be distributed among the consortium members, with Renesas Electronics holding a modest 6.8% stake. The majority of the equity will be owned by Mumbai-based engineering conglomerate CG Power and Industrial Solutions, while Thailand's OSAT provider Stars Microelectronics will have a 0.9% share.

"CG's entry into semiconductor manufacturing marks a significant diversification for us," stated S Vellayan, Chairman of CG Power and Industrial Solutions. "Our collaboration with Renesas and Stars Microelectronics will not only enhance our learning curves but also enable us to focus on fostering innovation and achieving operational excellence."

"India plays a crucial role in Renesas' global business strategy," emphasized Hidetoshi Shibata, CEO of Renesas Electronics. "We recognize the country's vibrant innovation ecosystem and its potential for growth, and we are dedicated to accelerating our investments in India to capitalize on these opportunities."

The OSAT facility is expected to have a production capacity of up to 15 million units per day. Renesas plans to manufacture a variety of semiconductor packages, including flip-chip BGA, flip-chip chip-scale, QFN, and QFP, catering to diverse industries such as automotive, consumer electronics, industrial applications, and 5G technology.

CG Power and Industrial Solutions, known for its expertise in manufacturing traction motors, propulsion systems, signaling relays for the Indian Railways, as well as a range of products for industries and consumer appliances, operates across multiple locations in India and abroad. The company, which became part of the Murugappa Group in 2020, is poised to leverage its manufacturing capabilities and industry experience in this new venture.

Stars Microelectronics, a key player in the electronics manufacturing services (EMS) sector, brings its specialized expertise to the consortium. With a focus on delivering high-quality electronic components and services, Stars Microelectronics is expected to contribute significantly to the success of the OSAT facility in India.