Murugappa Group firm CG Power and Industrial Solutions Ltd. (CG Power) has entered into a joint venture agreement with Renesas Electronics America Inc. (Renesas) and Stars Microelectronics (Thailand) Public Co. Ltd. (Stars) for setting up an outsourced semiconductor assembly and testing (OSAT) facility in India.
CG has also signed an agreement on technology and services and an offtake and manufacturing agreement with Renesas Electronics Corporation, Japan, and a technology know-how sharing and technical support agreement with Stars.
The formation of the JV is subject to necessary approvals, including that of the Ministry of Electronics and Information Technology (MeitY) and subsidy from central and state governments, the Tube Investments of India subsidiary said in a regulatory filing.
CG, Renesas and Stars have agreed to invest $205 million, $15 million and $2 million respectively, towards equity capital representing 92.34%, 6.76%, and 0.90% respectively.
In November, the company had announced that it will set up OSAT in JV at a proposed investment of about $791 million over a period of five years.
