Murugappa Group company CG Power and Industrial Solutions has signed an agreement with two foreign entities to set up an Outsourced Semiconductor Assembly and Test facility and plans to invest Rs 7,600 core in India over five years.The two entities are Renesas which is a leading semiconductor company headquartered in Japan and Stars Microelectronics, a Thailand-based Outsourced Semiconductor Assembly and Test provider, CG Power and Industrial Solutions said in an exchange filing on Friday."CG, a part of Tube Investments of India Limited and the Murugappa Group, Renesas Electronics Corporation (Renesas) and Stars Microelectronics (Thailand) Public Co. Ltd (Stars Microelectronics) recently signed a Joint Venture Agreement (JVA) to establish a Joint Venture (JV) to build and operate an OSAT facility in India," the filing said.The JV will be 92.3% owned by CG, with Renesas and Stars Microelectronics each holding equity capital of approximately 6.8% and 0.9%, respectively.JV partner company Renesas will provide advanced semiconductor technology and expertise. Stars Microelectronics will provide both technology for legacy packages and training and enablement, CG said.The JV also plans to invest Rs 7,600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as required, the company said.The JV will set up the OSAT manufacturing facility in Sanand, Gujarat, with a capacity that will ramp up to 15 million units per day."It will manufacture a wide range of products – ranging from legacy packages such as QFN and QFP to advanced packages such as FC BGA, and FC CSP. The JV will cater to industries such as automotive, consumer, industrial, 5G, to name a few," it said.CG Power and Industrial Solutions Chairman S. Vellayan, said, "CG's entry into the semiconductor manufacturing marks a strategic diversification for us. Our partners, Renesas and Stars Microelectronics, will make our learning curves steeper and help us focus on innovation and excellence."Hidetoshi Shibata, CEO of Renesas said, India is a critical part of Renesas' business. The company is committed to accelerating its investments in India. By partnering with the Murugappa Group and Stars Microelectronics, Renesas will bolster India's semiconductor ecosystem and address the growing semiconductor demand for the customers worldwide.Prompong Chaikul, Chairman of Executive Committee of Stars Microelectronics "We are deeply honored to join forces in this thrilling venture. Leveraging our expertise and experience in OSAT, we are committed to providing robust support to ensure the success of this project in India."