October 9, 2024 /SemiMedia/ — Renesas Electronics has agreed to sell its RF components division to India’s CG Power for $36 million. The deal, announced in early October, is part of CG Power’s expansion into the semiconductor design industry, which is seeing rapid growth globally. This acquisition is set to be carried out through one or more of CG Power’s subsidiaries.

Renesas’ RF business generated approximately $56 million in revenue in 2023 and includes assets such as equipment, intellectual property, inventory, customer contracts, and certain transferred employees. The sale is expected to close within six months, pending approval from the Committee on Foreign Investment in the United States (CFIUS) and other regulatory requirements.

The deal strengthens CG Power’s position in the semiconductor market, particularly in RF components, and will enhance its semiconductor design capabilities. CG Power Chairman Vellayan Subbiah emphasized the strategic importance of this acquisition, stating that it will boost India's role in the high-growth semiconductor design and development sector, an area where many global designers are of Indian origin.

Renesas’ Senior Vice President of the Analog and Connectivity Business Unit, Davin Lee, highlighted that the sale will allow Renesas to focus on its core business strategy in analog and connectivity, enabling the company to scale more effectively and meet growing customer demand.

In addition to this transaction, Renesas, CG Power, and Thailand’s Stars Microelectronics have partnered in a joint venture to establish an outsourced semiconductor assembly and test (OSAT) facility in Gujarat, India. This $920 million project aims to produce 15 million chips daily, including advanced packaging solutions for automotive, industrial, consumer, and 5G markets. Renesas will contribute its IC backend capabilities to the venture, which began operations in early 2024.

India has been actively positioning itself as a key player in the global semiconductor supply chain. The country recently launched a $10 billion initiative to boost local chip manufacturing, aligning with international partners such as the U.S. and Japan.