DALLAS - Engineering firm Jacobs (NYSE: J) has been selected to provide engineering design services for CG Semi Private Limited's new Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, India. Jacobs will act as the engineering, procurement, and construction services (EPCS) partner for the Mini Line and as the engineering partner for the Main Line of the project.
The partnership with CG Semi, a joint venture that includes CG, Renesas Electronics Corporation, and Stars Microelectronics (Thailand) Public Co. Ltd., aims to establish a state-of-the-art OSAT facility. The facility, which will span over 28 acres, is designed to manufacture various advanced and legacy semiconductor packages for industries such as automotive, consumer, industrial, and 5G.
Jacobs' Chair and CEO, Bob Pragada, expressed the company's eagerness to contribute to the growth and technological advancement in India's semiconductor market, leveraging their extensive experience across the U.S., Europe, and Asia.
The company, recognized as No.1 in Semiconductors, Manufacturing, and Electronic Assembly by Engineering News-Record, has a history of transformative projects in India. These include strategic and engineering consultancy for water management, recycle and reuse facilities, and building Biocon Biologics' largest monoclonal antibodies facility. Jacobs also supported operations and maintenance at Hindan Air Force Station in Ghaziabad, ensuring critical infrastructure remained operational throughout the Covid-19 pandemic.
Jacobs, with a team of approximately 45,000, provides a wide range of services in sectors such as advanced manufacturing, cities & places, energy, environmental, life sciences, transportation, and water. The company focuses on delivering outcomes and solutions for complex challenges, as highlighted on their website and social media platforms.
This press release contains forward-looking statements subject to various risks and uncertainties. Factors that could cause actual results to differ include economic conditions, governmental spending, global market conditions, and the impact of pandemics or infectious disease outbreaks. The information in this article is based on a press release statement from Jacobs.
In other recent news, Jacobs Solutions has been making significant strides in its operations. The company secured a 10-year contract to operate and maintain a new advanced water purification facility for the Soquel Creek Water District in California. Concurrently, Jacobs announced a five-year contract with Lincoln-Sewer Management District 1 Wastewater Authority in California, focusing on enhancing wastewater services for over 74,000 residents.
The company has also finalized a strategic corporate restructuring involving a spin-off and merger with Amentum Holdings, receiving a cash payment of approximately $0.9 billion. In other developments, Jacobs has been selected to modernize three Long Island Rail Road stations, a project valued at $227.5 million.
In response to these developments, RBC Capital has upgraded Jacobs Engineering (NYSE:J)'s stock target. Jacobs Solutions reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog, indicating a strategic move towards a higher-value, higher-margin portfolio. These are the latest developments in Jacobs Solutions' ongoing operations.
InvestingPro Insights
Jacobs' selection for the CG Semi project in India aligns with its position as a prominent player in the Professional Services industry, as highlighted by InvestingPro Tips. The company's involvement in this state-of-the-art semiconductor facility demonstrates its continued focus on advanced manufacturing and global expansion.
InvestingPro data shows that Jacobs has a market capitalization of $17.06 billion USD, reflecting its significant presence in the engineering and construction services sector. The company's revenue for the last twelve months as of Q3 2024 stood at $16.95 billion USD, with a revenue growth of 6.3% over the same period. This growth trajectory supports Jacobs' capacity to take on large-scale projects like the CG Semi facility.
An InvestingPro Tip notes that Jacobs has raised its dividend for 6 consecutive years, indicating financial stability and a commitment to shareholder returns. This is further supported by the company's dividend yield of 0.84% and a robust dividend growth of 11.54% in the last twelve months as of Q3 2024.
Investors should note that Jacobs' P/E ratio (adjusted) for the last twelve months as of Q3 2024 is 21.2, suggesting a moderate valuation relative to earnings. The company's strong return over the last month and three months, as mentioned in the InvestingPro Tips, could be indicative of market confidence in Jacobs' recent project wins and overall business performance.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 11 more InvestingPro Tips available for Jacobs, providing a deeper understanding of the company's financial health and market position.
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