CG Power and Industrial Solutions Limited ("CG"),; Renesas Electronics Corporation; and Stars Microelectronics (Thailand) Public Co. Ltd. ("Stars Microelectronics"), had recently signed a Joint Venture Agreement (JVA) to establish a Joint Venture (JV) to build and operate an OSAT facility in India. The Union Cabinet, chaired by Prime Minister Shri Modi, approved the project of the JV under India's Semiconductor scheme on February 29, 2024.

The JV brings together unique capabilities of the partners with a vision to "Make in India for the World." CG, with around 86 years of manufacturing expertise, is keen to build semiconductor capabilities and ecosystem in India. Renesas, a leading semiconductor company headquartered in Japan, will provide advanced semiconductor technology and expertise. Stars Microelectronics, a Thai based OSAT, will provide both technology for legacy packages and training and enablement.

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 million over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required. 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. The JV will cater to industries such as automotive, consumer, industrial, 5G, to name a few.