CG Power leads effort to create Indian OSAT plant
Indian industrial giant CG Power and Industrial Solutions is leading a JV with US's Renesas and Thailand's Stars to establish a new Outsourced Semiconductor Assembly and Test (OSAT) facility.
CG Power filed its application for a subsidy to assist with the project with the Ministry of Electronics and Information Technology in November. Although the JV is still awaiting full approval, CG says it will invest up to USD 205 million in the project (for a 92.34% stake), while Renesas will invest up to USD 15 million (6.76%) and Stars Microelectronics USD 2 million (0.90%).
CG Power is keen to play in the OSAT space, since OSAT units play a central role in semiconductor manufacturing: they package and test the silicon chips made at the foundries before they are shipped to the market. However, OSAT processes demand production-grade technology, hence the need for the JV with complementary partners.
The move is a positive one for India's semiconductor space. The government is working hard to develop it, and has successfully attracted multiple chip packaging, testing and assembly projects to the country.