CG Power and Industrial Solutions, a Murugappa Group company, has signed an agreement to purchase the Radio Frequency (RF) components business of Japan’s Renesas Electronics Corporation for $36 million. The deal, finalized on October 4, 2024, involves Renesas Electronics America Inc. and other affiliated entities.
As part of the acquisition, the company will obtain Intellectual Property (IP), physical assets, and select employees involved in semiconductor design, marketing, and applications related to Renesas’ RF components business. This move marks it’s entry into the semiconductor design industry.
To facilitate this expansion, CG Power has established a subsidiary, CG Semi Private Limited, focusing on Outsourced Semiconductor Assembly and Test (OSAT). CG and Renesas are joint venture partners in CG Semi Private Limited. The acquisition, expected to be completed within six months pending regulatory approvals, will help CG Power strengthen its position in the semiconductor design and development market.
Vellayan Subbiah, Chairman of CG Power, highlighted the strategic importance of this acquisition, noting, “This will enhance India’s footprint in the fast-growing semiconductor sector.” Renesas’ Senior Vice President Davin Lee also expressed confidence in the transition, stating that CG Power will continue delivering advanced RF technology to its customers while allowing Renesas to focus more on its core analog and connectivity business.
The Murugappa Group, with a 124-year legacy and revenues of Rs 77,881 crore, operates in diverse sectors such as agriculture, engineering, and financial services. It has nine listed companies, including Carborundum Universal, CG Power, and Cholamandalam Investment & Finance.
CG Power and Industrial Solutions, formerly known as Crompton Greaves, is a leading Indian company specializing in electrical equipment and solutions for the global power sector. The company manufactures a wide range of products, including transformers, switchgear, circuit breakers, and industrial motors, catering to sectors like power generation, transmission, and distribution.
With a strong emphasis on innovation and technology, CG Power provides energy-efficient solutions to industrial and utility clients worldwide. The company plays a crucial role in modernizing electrical infrastructure and enhancing power quality and reliability, aligning with the global shift towards sustainable and smart energy systems.
