Japanese semiconductor firm Renesas Electronics Corporation expects its chip assembly joint venture with Murugappa group’s CG Power and Thailand’s Stars Microelectronics to roll out its first chip from a pilot production line by mid-2026, its global CEO Hidetoshi Shibata says.

The Rs 7,600-crore facility in Sanand is expected to begin large-scale production in 2027, he mentioned, noting that Renesas is also negotiating with additional potential Indian partners to enhance its footprint in the nation on multiple fronts, while being very optimistic about its alliance with CG Power.

The tensions between India and Pakistan after the Pahalgam terror attack resulted in some short-term technical challenges that required resolution; however, this has not stopped the company's commitment to expand in Gujarat, a border state, Shibata says.

A nation such as India will not take any actions that could harm its prosperity. There are certain disputes, but I truly believe India will not act beyond what's expected.

The $10 billion Renesas, traded on the Tokyo Stock Exchange and a supplier to major automakers such as Toyota Motor Corp and Honda Motor Co, considers India a significant market. It provided the Chandrayaan-3 space mission with over 30 radiation-resistant components and is a key contributor in the smart metering sector within the nation.

"This marks the first occasion that three-nanometre chips will be developed in our nation," union electronics and information technology minister Ashwini Vaishnaw stated during the inauguration in Noida.

Renesas has collaborated with the Ministry of Electronics & Information Technology (MeitY) to assist local startups and educational institutions in VLSI (very large-scale integration) and embedded semiconductor systems.

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Vaishnaw stated that the nation is experiencing a growth in electronics manufacturing at a double-digit CAGR, leading to significant job creation, increased demand, and self-sufficient solutions. Additionally, as we advance the semiconductor sector in the nation, “we are addressing every aspect of the value chain.