Murugappa group company CG Power and Industrial Solutions said it has entered into a definitive agreement to acquire the radio frequency components business of Renesas Electronics Corporation (Renesas) for $36 million, making its entry into the semiconductor design business.
Japan-based Renesas is a supplier of advanced semiconductor solutions. The RF components business had an annual revenue of about $56 million in 2023. The RF components business being acquired consists of equipment, intellectual properties, inventories, customers, select transferring employees, contracts and other licenses..
An asset purchase agreement for the business was executed between CG Power and Renesas Electronics America Inc., a subsidiary of Renesas, and other affiliated entities of Renesas, that have assets in the RF components business, a statement said.
CG Power said it has established a subsidiary called CG Semi Pvt Ltd for the Outsourced Semiconductor Assembly and Test (OSAT) business.
Through this transaction, CG will acquire intellectual property, tangible assets and select transferring employees across various functions such as semiconductor design, marketing and applications, related to the RF components business.
Commenting on this acquisition, Mr. and Industrial Solutions Limited, said, “A significant number of semiconductor designers globally are Indians,” said Vellayan Subbiah, Chairman of CG Power.
“Through this acquisition, we aim to enhance India’s presence in the semiconductor design and development space, considered to be a high-growth and high-profitability sector.”
Davin Lee, Senior Vice President and General Manager of the Analog and Connectivity Group at Renesas, said the acquisition by CG Power would “provide the opportunity for our RF team to expand.” He added that it would also sharpen his company’s focus on the strategic segment of analog and connectivity business, “enabling us to further scale to better serve customer demand.”
In March 2024, CG Power, which became a part of the Murugappa group in 2020, announced a joint venture with Renesas and Stars Microelectronics to set up an OSAT facility in India, thereby marking its foray into the semiconductor industry