The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the establishment semiconductor unit for specialised chips at an outlay of Rs 7,600 crore.

Renesas is a semiconductor company focussed on specialised chips. It operates 12 semiconductor facilities and is an important player in microcontrollers, analog, power, and System on Chip (‘SoC)’ products.

The CG Power semiconductor unit will manufacture chips for consumer, industrial, automotive and power applications. It would have a capacity of 15 million per day.

The JV will be 92.3 per cent owned by CG Power, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8 per cent and 0.9 per cent, respectively. The JV plans to invest Rs 7,600 crore 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 state-of-the-art 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," CG Power said.