Murugappa Group firm CG Power owns 92% stake in semiconductor joint venture
CHENNAI: CG Power and Industrial Solutions Limited, a subsidiary of Tube Investments of India Limited and part of the Murugappa Group, will own 92.3% stakes in the upcoming semiconductor joint venture.
The company’s plans to set up a semiconductor unit in Sanand, Gujarat, was approved on Thursday under the Development of Semiconductors and Display Manufacturing Ecosystems in India scheme. The JV will invest Rs 7,600 crore over a five-year period, which will be financed through a mix of equity and bank borrowings, along with government subsidy.
Renesas and Stars Microelectronics each will hold equity capital of nearly 6.8% and 0.9%, respectively, as per exchange filings by CG power. Both will play a key role as technical partners for the project.
It has recently signed an agreement with Renesas Electronics Corporation, Thailand-based Stars Microelectronics to establish a Joint Venture (JV) to build and operate an outsourced Semiconductor Assembly and Test (OSAT) facility in India. Japanese chipmaker Renesas brings advanced manufacturing technology and capabilities and Star Microelectronics, an OSAT provider, will provide technical know-how.