CG Power & Industrial Solutions Ltd. along with Japanese semiconductor solution provider Renesas Electronics Corp. and Thailand's Stars Microelectronics will jointly build an outsourced semiconductor assembly and test facility in India.The joint venture is part of the three semiconductor units approved by the government in order to address global chip shortages and push India's semiconductor self-reliance. The three units will have an aggregate investment of Rs 1,25,600 crore.About The Joint Venture CG Power will own 92.3% of the joint venture, whereas Renesas and Stars Microelectronics each will hold equity capital of approximately 6.8% and 0.9%, respectively, according to an exchange filing.The JV plans to invest Rs 7,600 crore over a period of five years, financed via a mix of subsidies, equity, and potential bank borrowings as required, it said.The joint venture will set up a manufacturing facility in Sanand, Gujarat, with a capacity to ramp up to 15 million units per day. The joint venture will produce legacy packages such as Quad Flat No-Lead and Quad Flat packages; types of chips used for integrated circuits. It will also manufacture advanced packages such as Flip Chip Ball Grid Array and Flip Chip Chip Scale Package. The products will cater industries such as automotive, consumer, industrial, 5G, and more, stated the exchange filling.The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the JV project under India's Semiconductor scheme on February 29, 2024.Shares of the company rose as much as 11.66% to Rs 494.95 apiece, the highest level since Nov. 23. It pared gains to trade 7.7% higher at Rs 477.96 apiece as of 9:56 a.m. This compares to a 0.84% advance in the NSE Nifty 50 Index.It has risen 59.26% in the last twelve months. Total traded volume so far in the day stood at 3.99 times its 30-day average. The relative strength index was at 64.79.Out of eight analysts tracking the company, five maintain a 'buy' rating and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 4%.Gujarat Gas Share Price Accounts For Volume Gains On Lower Costs, Says Nomura