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CG Power Acquires Renesas RF Business For $36M

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Synopsis:

CG Power has acquired Renesas Electronics’ radio frequency components business for $36 million, marking its entry into semiconductor design. This acquisition strengthens India's presence in the semiconductor industry.

CG Power news today

CG Power and Industrial Solutions, a Murugappa Group company, has taken a significant step into the semiconductor industry by acquiring the radio frequency (RF) components business of Japan-based Renesas Electronics Corporation for $36 million. This acquisition marks CG Power's foray into the high-growth and high-profitability semiconductor design space, further diversifying its portfolio.

CG POWER AND IND SOL LTD

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769-14.15 (-1.80 %)

Updated - 13 December 2024
784.85day high
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761.00day low
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Overview of the acquisition

The acquisition includes the transfer of intellectual property, tangible assets, inventory, customer contracts, and select employees from Renesas’ RF components division. This will enable CG Power to integrate expertise in semiconductor design and manufacturing into its operations. The RF components business generated approximately $56 million in annual revenue in 2023, making it a valuable addition to CG Power’s growing technology portfolio.

CG Power has created a new subsidiary, CG Semi Pvt Ltd, to handle its Outsourced Semiconductor Assembly and Test (OSAT) business. Through this entity, the company will further explore the potential of semiconductor development, which is considered a key sector in the global technology landscape.

Strategic growth in the semiconductor industry

This acquisition is part of CG Power’s broader strategy to enter the semiconductor industry, which holds immense potential for growth and profitability. The company is positioning itself to benefit from the increasing demand for semiconductor solutions, driven by advancements in 5G, IoT, and automotive technologies.

In March 2024, CG Power announced a joint venture with Renesas and Stars Microelectronics to establish an OSAT facility in India, signalling the company's long-term commitment to the semiconductor market. This acquisition of Renesas' RF components business further strengthens CG Power’s capabilities in this competitive field.

Impact on CG Power share price

The acquisition is expected to positively impact CG Power's share price, as investors look forward to the company's growth in the lucrative semiconductor sector. With an established presence in the industrial solutions space and a new focus on technology-driven innovation, CG Power aims to expand its market presence both in India and internationally.

CG Power’s acquisition of Renesas’ RF components business is a pivotal move that positions the company for growth in the global semiconductor design industry. Investors are advised to monitor CG Power share price in the coming weeks.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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