CG Power acquires RF components unit of Renesas for $36 million

India’s CG Power has acquired the radio frequency (RF) components business of Japan’s Renesas for USD 36 million, marking its entry into semiconductor design.

CG Power and Industrial Solutions is part of the Murugappa Group. Renesas Electronics Corporation is a supplier of advanced semiconductor solutions.

An asset purchase agreement for the business was executed on October 4, 2024, between CG Power and Industrial Solutions, and Renesas Electronics America, a subsidiary of Renesas, and other affiliated Renesas entities with assets in the RF components business.

Through this transaction, CG will acquire IP, tangible assets and select employees across various functions such as semiconductor design, marketing and applications related to the RF components business.

“Through this acquisition, we aim to enhance India’s presence in the semiconductor design and development space, considered to be a high-growth and high-profitability sector,” Vellayan Subbiah, chairman of CG Power and Industrial Solutions, said.

“This agreement with CG will provide the opportunity for our RF team to expand,” Davin Lee, senior vice president and general manager of the analog and connectivity group at Renesas, said. “We are pleased that CG will deliver outstanding RF technology and world-class support to our customers, and we will support a smooth transition to facilitate the same. For Renesas, this move sharpens our focus on the strategic segment of our analog and connectivity business, enabling us to further scale to better serve customer demand.”