CG Power and Industrial Solutions Limited has partnered with Renesas America Inc and Stars Microelectronics (Thailand) PCL in a joint venture (JV) agreement and proposed to set up an outsourced semiconductor assembly and testing facility in India.
In a stock exchange filing, CG Power noted that the same is subject to the required regulatory and statutory approvals, including from the Ministry of Electronics and Information Technology (MeitY), the government of India and subsidy from central and state governments, as applicable.
As per the exchange filing, CG Power, Renesas and Stars are to invest, in one or more tranches of up to $205 million, $15 million, and $2 million, respectively, as equity capital of the JV company, which will represent around 92.34 per cent, 6.76 per cent and 0.9 per cent, respectively.
The JV agreement will come into effect after the proposed project transaction is approved.
