36 million US dollars! Indian CG Power acquires Renesas RF division
India's CG Power will acquire Japan's Renesas Electronics' RF component business for $36 million. These two companies, along with Thailand based Stars Microelectronics, are building outsourced semiconductor assembly and testing (OSAT) facilities in India, with a total investment of INR 76 billion and a daily production capacity of approximately 15 million chips, including a variety of products ranging from traditional packaging such as QFN and QFP to advanced packaging for automotive, consumer, industrial, and 5G markets such as FC BGA and FC CSP.
According to company documents submitted to the Mumbai Stock Exchange and the National Stock Exchange of India, CG Power announced in early October this year that it had reached a final agreement to acquire the RF component business of Renesas Electronics USA and its affiliated entities. This acquisition will be conducted through one or more CG Power subsidiaries.
Renesas Electronics' RF business will generate approximately $56 million in revenue in 2023, including equipment, intellectual property, inventory, customers, selection of transfer employees, contracts, and other licenses.
CG Power and Renesas Electronics USA are joint venture partners of CG Semi Private Limited, a subsidiary engaged in OSAT business. This acquisition will enable CG Power to expand its semiconductor design business.
The company documents indicate that the acquisition is expected to be completed within approximately six months, subject to certain prerequisites, including obtaining approval from the Committee on Foreign Investment in the United States and any other necessary regulatory and statutory approvals. It is also necessary to comply with customary adjustments and applicable taxes.
CG Power Chairman Vellayan Subbiah said, "There are quite a few semiconductor designers from India around the world." He emphasized that through this acquisition, CG Power seeks to strengthen India's position in the semiconductor design and development field, which is considered a high growth and high profit industry.
Davin Lee, Senior Vice President and General Manager of Renesas Electronics' Analog and Connectivity Division, stated that this acquisition will expand its RF team. He also pointed out that this move will strengthen the company's focus on the simulation and connectivity business strategy, enabling it to further expand its scale and better meet customer needs.
In early 2024, CG Power, Renesas Electronics, and Thai Stars Microelectronics established a joint venture that was granted permission to set up an OSAT factory in Gujarat, India. In this collaboration, Renesas Electronics will contribute its advanced IC backend capabilities to the joint venture.
According to information, multinational corporation CG Power is headquartered in Mumbai, India, engaged in the design, manufacturing, and sales of products related to power generation, transmission, distribution, and railway transportation. It was acquired by Murugapaca Group in 2020.
India is seeking to establish its own reliable position in the semiconductor supply chain, and has therefore launched a $10 billion plan to promote local chip manufacturing. According to the plan, India will cooperate with countries such as the United States and Japan in the chip supply chain.
Renesas Electronics' RF business will generate approximately $56 million in revenue in 2023, including equipment, intellectual property, inventory, customers, selection of transfer employees, contracts, and other licenses.
CG Power and Renesas Electronics USA are joint venture partners of CG Semi Private Limited, a subsidiary engaged in OSAT business. This acquisition will enable CG Power to expand its semiconductor design business.
The company documents indicate that the acquisition is expected to be completed within approximately six months, subject to certain prerequisites, including obtaining approval from the Committee on Foreign Investment in the United States and any other necessary regulatory and statutory approvals. It is also necessary to comply with customary adjustments and applicable taxes.
CG Power Chairman Vellayan Subbiah said, "There are quite a few semiconductor designers from India around the world." He emphasized that through this acquisition, CG Power seeks to strengthen India's position in the semiconductor design and development field, which is considered a high growth and high profit industry.
Davin Lee, Senior Vice President and General Manager of Renesas Electronics' Analog and Connectivity Division, stated that this acquisition will expand its RF team. He also pointed out that this move will strengthen the company's focus on the simulation and connectivity business strategy, enabling it to further expand its scale and better meet customer needs.
In early 2024, CG Power, Renesas Electronics, and Thai Stars Microelectronics established a joint venture that was granted permission to set up an OSAT factory in Gujarat, India. In this collaboration, Renesas Electronics will contribute its advanced IC backend capabilities to the joint venture.
According to information, multinational corporation CG Power is headquartered in Mumbai, India, engaged in the design, manufacturing, and sales of products related to power generation, transmission, distribution, and railway transportation. It was acquired by Murugapaca Group in 2020.
India is seeking to establish its own reliable position in the semiconductor supply chain, and has therefore launched a $10 billion plan to promote local chip manufacturing. According to the plan, India will cooperate with countries such as the United States and Japan in the chip supply chain.