Jacobs Awarded CG Semi Contract for Engineering Design of New OSAT Facility in India

Rhea-AI Summary

Jacobs (NYSE: J) has been appointed by CG Semi Private for the engineering design of a new Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, India. Jacobs will serve as the engineering, procurement and construction services (EPCS) partner on the Mini Line and engineering partner on the Main Line.

The main facility is planned to be built on over 28 acres and will manufacture a variety of advanced and legacy packages for industries such as automotive, consumer, industrial, and 5G. This project highlights Jacobs' commitment to delivering innovative solutions in India's expanding semiconductor market, leveraging their extensive experience in the U.S., Europe, and Asia.

Positive

• Secured contract for engineering design of new OSAT facility in India
• Appointed as EPCS partner for Mini Line and engineering partner for Main Line
• Project aligns with Jacobs' expertise in semiconductor industry
• Facility will serve multiple high-growth industries (automotive, consumer, industrial, 5G)

Negative

• None.

Insights

Tech Expert

This contract win for Jacobs is a positive development, showcasing the company's expanding presence in the rapidly growing semiconductor industry in India. The project involves engineering design for CG Semi's new OSAT facility, which will manufacture advanced and legacy packages for various industries.

Key points to consider:

• Jacobs' role as the EPCS partner for the Mini Line and engineering partner for the Main Line demonstrates their comprehensive capabilities in semiconductor facility design.
• The facility's 28-acre size and focus on advanced packaging suggest a significant long-term investment in India's semiconductor ecosystem.
• This project aligns with India's push to become a global semiconductor manufacturing hub, potentially leading to more opportunities for Jacobs in the region.
• Jacobs' No. 1 ranking in Semiconductors, Manufacturing and Electronic Assembly by Engineering News-Record underscores their expertise in this field.

While this single contract may not have an immediate material impact on Jacobs' financials given its $17 billion market cap, it positions the company well for future growth in the expanding Indian semiconductor market.

DALLAS, Oct. 10, 2024 /PRNewswire/ -- Jacobs (NYSE: J) has been appointed by CG Semi Private Limited, a Joint Venture between CG, Renesas Electronics Corporation, and Stars Microelectronics (Thailand) Public Co. Ltd., for engineering design of CG Semi's new Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujrat in India.

Serving as the engineering, procurement and construction services (EPCS) partner on the Mini Line, and engineering partner on the Main Line, Jacobs will support CG Semi in its endeavor to establish a world-class OSAT facility.

"Jacobs partnering with CG Semi on this pivotal project underscores our commitment to delivering innovative and sustainable solutions in the rapidly expanding semiconductor market in India," said Chair and CEO Bob Pragada. "With our extensive experience in the U.S., Europe and Asia, and proven capabilities, we are eager to contribute to the success of their new facility, helping to drive growth and technological advancement in the region."

The main facility is planned to be built on more than 28 acres. The OSAT facility will manufacture a variety of advanced and legacy packages for industries such as automotive, consumer, industrial and 5G.

Jacobs, ranked by Engineering News-Record as No.1 in Semiconductors, Manufacturing and Electronic Assembly, has worked on several transformative projects in India, delivering strategic and engineering consultancy works for integrated urban water management, recycle and re-use facilities and building Biocon Biologics' largest monoclonal antibodies facility. Since 2016, a Jacobs team has also supported the operations and maintenance at Hindan Air Force Station in Ghaziabad, making sure critical infrastructure is running 24/7. During Covid-19, the team helped the Indian Air Force (IAF) Humanitarian Mission in providing supplies from around the world to people in India.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With a team of approximately 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook.

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum  (together, "new Amentum ") on Jacobs' and new Amentum's businesses, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation related to governmental spending, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, as well as the company's other filings with the Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

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FAQ

What contract did Jacobs (NYSE: J) recently win in India's semiconductor industry?

Jacobs (NYSE: J) was awarded a contract by CG Semi Private for the engineering design of a new Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, India.

What is the size of the new OSAT facility Jacobs (NYSE: J) is designing in India?

The main facility is planned to be built on more than 28 acres in Sanand, Gujarat, India.

What industries will the new OSAT facility designed by Jacobs (NYSE: J) serve?

The OSAT facility will manufacture advanced and legacy packages for industries such as automotive, consumer, industrial, and 5G.

What is Jacobs' (NYSE: J) role in the CG Semi OSAT facility project in India?

Jacobs will serve as the engineering, procurement and construction services (EPCS) partner on the Mini Line, and engineering partner on the Main Line for CG Semi's new OSAT facility.