Renesas forms new JV to build OSAT facility in India
CG Power and Industrial Solutions Limited, Renesas and Stars Microelectronics recently signed an agreement to establish a joint venture to build and operate an OSAT facility in India.
The JV brings together the capabilities of the partners with a vision to “Make in India for the World.” CG, with around 86 years of manufacturing experience, is keen to build semiconductor capabilities and ecosystems in India. Renesas will provide advanced semiconductor technology and expertise. Stars Microelectronics, a Thai-based OSAT, will provide both technologies for legacy packages and training and enablement.
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved the project of the JV under India’s Semiconductor scheme on February 29, 2024.
The JV will be 92.3% owned by CG, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8% and 0.9%, respectively. The JV plans to invest INR 7,600 crores over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required, a press release reads.
The JV will set up a manufacturing facility in Sanand, Gujarat, with a capacity that will ramp up to 15 million units per day. The JV will manufacture a wide range of products – ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. It will cater to industries such as automotive, consumer, industrial, 5G, according to the press release.
