Mitsui & Company Limited has signed a strategic business partnership agreement with Kaynes Semicon Private Limited and AOI Electronics Company Limited to support the establishment of a semiconductor back-end manufacturing business in India. Kaynes Semicon is engaged in outsourced semiconductor assembly and test (OSAT) operations, while AOI Electronics is Japan’s largest OSAT company.
India has been encouraging the expansion of its manufacturing sector under the Make in India programme, with significant government support directed towards the semiconductor industry. The project has also received approval from the government of India as an eligible initiative under this framework.
Under the agreement, Mitsui will assist Kaynes in setting up its OSAT business by leveraging AOI Electronics’ expertise in semiconductor back-end processes and by supporting the sales of products manufactured by Kaynes. Mitsui has also obtained exclusive rights to manage raw materials sourced by Kaynes from Japanese affiliated suppliers as well as suppliers outside India. In addition, the company will facilitate collaboration with suppliers within and outside the country to support the launch and stable operations of the facility.
Mitsui has also secured the right to acquire shares in Kaynes in the future and will explore opportunities for deeper strategic involvement. The initiative comes at a time when many countries are strengthening domestic semiconductor production and reshaping supply chains due to the strategic importance of chips.
Kaynes Semicon, associated with its parent company Kaynes Technology India Limited, received government approval to establish its OSAT operations in September 2024. The company aims to begin operations in the second half of 2026. Through this partnership, Mitsui plans to support the growth of Kaynes’ business, contribute to the development of India’s semiconductor ecosystem, generate employment and strengthen the country’s digital economy.
