Rashi Peripherals has entered into a joint venture with Japan-based electronics and technology company Restar Corporation to expand its semiconductor and embedded solutions business in India.
Under the agreement, Rashi Peripherals will transfer its semiconductor business division to a wholly owned subsidiary headquartered in Bengaluru, along with a step-down subsidiary in Singapore. Restar Corporation will acquire a 26% stake in the new entity, while Rashi Peripherals will retain a 74% holding. The joint venture is scheduled to begin operations in October 2026.
The partnership will focus initially on advanced image sensing solutions for industrial and automotive applications. The companies plan to support these solutions with local engineering, design and technical services tailored to the requirements of Indian customers.
Focus on automotive and industrial applications
Rashi Peripherals and Restar aim to support the growing use of semiconductor technologies across automotive, robotics, industrial automation and other emerging sectors.
The joint venture is expected to work with automotive Tier 1 suppliers, industrial robotics companies, electronics manufacturing service providers, machine vision businesses and other manufacturers that require advanced sensing and embedded solutions.
Restar will contribute its technical capabilities, product portfolio and relationships with global original equipment manufacturers. Rashi Peripherals will bring its distribution network and market presence in India, allowing the partners to develop and deliver solutions closer to local customers.
The new entity will be headquartered in Bengaluru and will operate through a network covering five major Indian cities. Its board will have four members, with three nominated by Rashi Peripherals and one by Restar Corporation.
Local engineering and technical support
A key objective of the partnership is to build local capabilities around semiconductor design, applications engineering and technical support.
The joint venture plans to provide training for Indian engineers through Japanese design experts and add more than 50 local engineering positions over the next two years. These efforts are expected to strengthen field application engineering support and help customers adopt advanced semiconductor products more efficiently.
The arrangement will also support the development of locally relevant solutions for automotive and industrial customers. By combining Restar’s technical expertise with Rashi Peripherals’ domestic reach, the companies intend to accelerate the adoption of image sensing and other semiconductor technologies in India.
Moving up the semiconductor value chain
The joint venture marks a strategic shift for Rashi Peripherals as it seeks to expand beyond traditional IT distribution and build a stronger presence in higher value semiconductor and embedded solutions.
Traditional distribution businesses generally operate on relatively narrow margins. Rashi Peripherals expects semiconductor services, enterprise software and related technical capabilities to support margin expansion and improve returns over time. The company’s recent acquisition of VDA Infosolutions is also intended to strengthen its design, pre sales, post sales and managed services capabilities.
The partnership with Restar is therefore positioned as more than a distribution arrangement. It gives Rashi Peripherals access to specialised semiconductor expertise and global technology relationships while helping Restar establish a stronger operating presence in the Indian market.
With operations expected to commence in October 2026, the joint venture will focus on building a local semiconductor solutions platform for India’s automotive, industrial automation and emerging technology markets.
