CG Power to acquire Radio Frequency components biz of Renesas for USD 36 mn

New Delhi: On Saturday, CG Power and Industrial Solutions announced that they had signed an agreement to purchase the Radio Frequency (RF) components business of Renesas Electronics Corporation, a Japanese company, for a cash amount of USD 36 million. A BSE filing stated that on October 4, 2024, CG entered into an asset purchase agreement with Renesas Electronics America Inc, a subsidiary of Renesas, and other affiliated entities of Renesas, which possess assets in the RF components industry.

According to the agreement, CG Power, a company under the Murugappa Group, will take over Intellectual Property (IP), physical assets, and specific employees from Renesas' RF components business, including those in semiconductor design, marketing, and applications. The planned acquisition will allow the company to enter the semiconductor design industry. CG Power has created a secondary company, CG Semi Private Limited, for the Outsourced Semiconductor Assembly and Test (OSAT) industry. CG and Renesas Electronics America Inc are partners in a joint venture known as CG Semi Private Limited. Entities established by CG will acquire the business after meeting standard conditions and regulatory approvals, according to the statement.

The completion of the acquisition is anticipated to occur within approximately 6 months, pending required approvals. A large percentage of chip designers worldwide are from India. Vellayan Subbiah, Chairman of CG Power and Industrial Solutions, stated that the goal of the acquisition is to boost India's influence in the semiconductor design & development sector, which is known for its rapid growth and high profitability. According to Davin Lee, the Senior Vice President and General Manager of Renesas' Analog and Connectivity Group, this deal will allow the RF team at Renesas to grow. "...CG will provide excellent RF technology and top-notch customer support, while also ensuring a seamless transition for our customers." This action helps Renesas prioritize and concentrate better on the.