In a significant step in direction of strengthening India’s semiconductor manufacturing base, Murugappa Group agency CG Energy and Industrial Options Ltd. has joined arms with Japan’s Renesas Electronics Company and Thailand’s Stars Microelectronics to arrange an Outsourced Semiconductor Meeting and Check (OSAT) plant in Sanand, Gujarat. The three way partnership (JV) plans to launch its first chip from a pilot manufacturing line by mid-2026, mentioned Renesas CEO Hidetoshi Shibata.
The JV will make investments ₹7,600 crore in 5 years, funded by a mix of subsidies, fairness, and attainable borrowings from banks.
CG Energy may have a 92.3% shareholding, whereas Renesas and Stars Microelectronics may have about 6.8% and 0.9%, respectively.
The Sanand plant is ready to construct as much as a capability of 15 million models a day, manufacturing varied semiconductor packages. These comprise conventional packages corresponding to Quad Flat No-Lead (QFN) and Quad Flat Bundle (QFP), and newer packages corresponding to Flip Chip Ball Grid Array (FC BGA) and Flip Chip Scale Bundle (FC CSP). The choices will serve completely different sectors, together with automotive, client electronics, industrial, and 5G expertise. This initiative aligns with India’s broader technique to boost its semiconductor ecosystem and scale back dependence on imports. The Union Cupboard accepted the undertaking underneath India’s Semiconductor scheme on February 29, 2024.
“Renesas CEO Hidetoshi Shibata emphasised that India should concentrate on constructing its mental property (IP) to spice up its competitiveness within the worldwide semiconductor business.”
Conclusion:
The partnership combines the manufacturing expertise of CG Energy, Renesas’s cutting-edge semiconductor expertise, and Stars Microelectronics’ data in legacy package deal expertise in addition to coaching. As India additional develops its semiconductor experience, the three way partnership represents a turning level in direction of making the nation a frontrunner within the manufacture of chips worldwide. The partnership between Renesas, CG Energy and Stars Microelectronics creates the potential for innovation, financial improvement and technological development in India’s semiconductor business.
