CG Power's Strategic Leap: RF Component Acquisition from Renesas

CG Power and Industrial Solutions, a Murugappa Group company, has announced a $36 million acquisition of the Radio Frequency components business from Japan-based Renesas Electronics. This move includes intellectual properties and key staff, aiming to bolster CG Power's semiconductor design capabilities and expand its presence in the high-growth sector.

CG Power and Industrial Solutions, part of the Murugappa Group, has announced a significant acquisition, purchasing Renesas Electronics' Radio Frequency components business for $36 million. The deal, formalized through an asset purchase agreement with Renesas Electronics America Inc, marks a key move for CG Power, aiming to enhance its semiconductor design expertise.

Included in the acquisition are intellectual properties, tangible assets, and certain transferring employees from Renesas. This strategic step allows CG Power to strengthen its foothold in the burgeoning semiconductor sector. CG Power has formed a new subsidiary, CG Semi Private Limited, in collaboration with Renesas Electronics America Inc, to manage the assembly and testing of semiconductors.

The transaction is expected to conclude within six months, pending regulatory approvals. Vellayan Subbiah, Chairman of CG Power, expressed intentions to boost India's role in semiconductor design. His counterpart at Renesas, Davin Lee, emphasizes their commitment to expanding their analog and connectivity business through this divestment.

(With inputs from agencies.)