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CG Power acquires Renesas Electronics’ RF Components for $36 million
Industry News- Oct 07,24
Renesas, a Japan-based leader in advanced semiconductor solutions, generated $56 million in revenue from its RF components business in 2023.
Murugappa Group company CG Power and Industrial Solutions has signed a definitive agreement to acquire the radio frequency (RF) components business of Renesas Electronics Corporation for $36 million, marking its entry into the semiconductor design sector.
Renesas, a Japan-based leader in advanced semiconductor solutions, generated $56 million in revenue from its RF components business in 2023. The acquisition encompasses equipment, intellectual property, inventories, customer contracts, select employees, and other licenses tied to the RF business.
The asset purchase agreement was executed between CG Power and Renesas Electronics America Inc., along with other Renesas affiliates holding assets in the RF components segment, according to the company’s statement.
CG Power has also established a new subsidiary, CG Semi Pvt Ltd, to focus on the Outsourced Semiconductor Assembly and Test (OSAT) business as part of this strategic expansion.
Through the acquisition, CG Power will gain valuable intellectual property, tangible assets, and key personnel involved in semiconductor design, marketing, and applications related to RF components.
Commenting on the deal, Vellayan Subbiah, Chairman of CG Power, highlighted the significance of the move for India’s semiconductor landscape. “A substantial number of semiconductor designers globally are Indians. Through this acquisition, we aim to strengthen India’s presence in the high-growth and high-profitability semiconductor design and development sector,” he stated.
Davin Lee, Senior Vice President and General Manager, Analog and Connectivity Group at Renesas, emphasised that the acquisition by CG Power offers growth opportunities for their RF team while allowing Renesas to sharpen its focus on its core analog and connectivity business to better serve customer needs.
Earlier in March 2024, CG Power announced a joint venture with Renesas and Stars Microelectronics to establish an OSAT facility in India, signaling its broader ambitions in the semiconductor industry since joining the Murugappa Group in 2020.
(Business Line)
Murugappa Group
CG Power and Industrial Solutions
semiconductor
Vellayan Subbiah
Renesas Electronics
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