CG Power Shares Rise Sharply on Plan for Chip JV with Japan, Thai Partners

By Kosaku Narioka

CG Power & Industrial Solutions shares rose sharply on its plan to jointly build and operate a chip plant in India with Japanese and Thai partners.

Shares were recently 5.0% higher at 465.95 Indian rupees on Friday after rising as much as 11% earlier.

CG Power said Thursday after market close that the Indian government had approved the joint-venture project to build and operate a semiconductor assembly and testing facility in Gujarat that will cater to customers in auto, industrial, and 5G industries.

"CG's entry into the semiconductor manufacturing marks a strategic diversification for us," said CG Power Chairman Vellayan Subbiah. "We are very keen to build out India's semiconductor capability and ecosystem."

The Mumbai-based electrical engineering company will own a 92.3% stake in the joint venture, while Japan's Renesas Electronics will hold a 6.8% stake and Thailand's Stars Microelectronics will have a 0.9% interest. The joint venture plans to invest INR76.00 billion ($916.7 million) over five years, CG Power said.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

March 01, 2024 01:47 ET (06:47 GMT)

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