Kaynes Semicon is on track to become the first company in India to manufacture packaged semiconductor chips by July, marking a key milestone for the India Semiconductor Mission 1.0. The company reported that the pilot line is nearly complete, with clean room and machinery installations scheduled to finish by early May. Qualification testing is planned for June, with initial samples set to be delivered to U.S.-based Alpha Omega Semiconductor in July.
In September last year, Kaynes received cabinet approval to establish an outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, involving an investment of Rs 33.07 billion. The facility will have the capacity to produce 6.3 million chips daily.
Further, Kaynes has entered a multi-year agreement with Alpha Omega Semiconductor to offer packaging and testing services for 12 different chip packages, including insulated-gate bipolar transistors (IGBTs), intelligent power modules (IPMs), and power MOSFETs. Initial production samples are scheduled for delivery in July and August for evaluation.
The company anticipates multi-million-dollar revenues over the course of the agreement. Besides Alpha Omega, Kaynes has four customers, including in Japan and the US, lined up. The firm will focus on high voltage packages for air-conditioners and satellites.
Kaynes is among four companies to have received approval for semiconductor assembly plants, alongside CG Power, Tata Electronics, and Micron. Notably, Tata Electronics is also building India’s first wafer fabrication facility.
The central government will contribute 50 per cent of the total investment in the Sanand facility, amounting to Rs 16.53 billion, while the Gujarat government will provide 20 per cent. The remaining Rs 9.92 billion, or 30 per cent, will be invested by the company itself. Although the fiscal support agreement with the central government is still pending, Kaynes raised funds in December 2023 to support the project.
Additionally, Kaynes is expanding its manufacturing footprint with a new printed circuit board (PCB) facility in Tamil Nadu and further projects in Odisha and Madhya Pradesh. The Tamil Nadu unit will focus on bare board PCBs, marking Kaynes’ entry in this segment within the state.
