CG Power and Industrial Solutions Limited has entered into an agreement to acquire the Radio Frequency (RF) Components business from Renesas Electronics America Inc. and its affiliates.
The RF Components business being acquired includes equipment, intellectual property, inventories, customer contracts, licenses, and key transferring employees. The transaction is expected to be completed within six months, subject to regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS).
Vellayan Subbiah, Chairman of CG Power, highlighted the prominence of Indian semiconductor designers globally. He noted that through this acquisition, CG aims to strengthen India’s role in the semiconductor design space. The company aims to further expand its footprint in this high-growth market and contribute to the country’s standing in this sector.
Renesas, a key supplier of advanced semiconductor solutions, sees this transaction as an opportunity for its RF team to grow and for CG to deliver strong support and technology to its customers. The acquisition is valued at around USD 36 million and will be executed through one or more subsidiaries set up by CG Power.
CG Power, part of the Murugappa Group, has a strong presence in the electrical engineering sector with business lines in Industrial Systems and Power Systems. With manufacturing plants across India and one in Sweden, the company has a diverse portfolio, producing traction motors, transformers, and consumer appliances. The company’s entry into the semiconductor design business, facilitated by this acquisition, aligns with its broader vision to expand and strengthen its product offerings and market position.