Raghu Panicker, CEO, Kaynes Semicon
Kaynes Semicon, the semiconductor subsidiary of Kaynes Technology, is preparing to dispatch its first production samples from its newly built outsourced semiconductor assembly and test (OSAT) facility in Gujarat by late August.
According to Raghu Panicker, the CEO of Kaynes Semicon, the 50-acre plant in Sanand is positioned to handle 3.3 billion components annually once fully operational. Approved in September last year, the facility has its pilot line operational and equipment currently being installed.
Alongside, it is targeting a commercial rollout of chips for the US-based Alpha & Omega Semiconductor (AOS), a global supplier of semiconductor chip products, in Q1 CY26. Kaynes is currently conducting 11 different assemblies, tests, and packaging for the company.
Backed by an investment of ₹3,300 crore, the OSAT project has secured a 70 per cent subsidy under the India Semiconductor Mission (ISM), with 50 per cent funded by the Central government and 20 per cent by the State.
Panicker shared that Kaynes Semicon is financially self-sufficient due to government funding but is exploring strategic partnerships. Last year, it partnered with Japanese conglomerate Mitsui & Co. to secure raw materials for chipmaking.
“Mitsui is actively considering an investment of between 10 per cent and 20 per cent in the company. Kaynes Semicon expects to achieve cash-positivity within the next 1.5 to 2 years,” the Kaynes Semicon CEO said.
Kaynes Semicon intends to cover three verticals: power, compute & storage, and advanced packaging. It is currently working with a few customers in all three areas. The company is exploring advanced packaging technologies, including newer approaches such as 2.5D and 3D wafer-level packaging, using methods like through-silicon vias and copper-to-copper bumping.
In January last year, Kaynes Technology acquired a 13.2 per cent stake in US-based Mixx Technologies, a deeptech semiconductor startup, for $3 million. “They handle chip design and support us with process design,” Panicker said. “Next year, we plan to bring this technology to India to aid in process development and implement advanced packaging domestically.”
He noted that North America, Japan, and India are the company’s three key markets, with strong demand in sectors such as EVs, industrial applications, railways, and energy in both India and Japan.
Kaynes is looking to integrate its EMS expertise with OSAT efficiency and PCB manufacturing. “A competitive advantage is that we cover EMS, OSAT, and bare board PCB. Ours is the only company in India with 38 years of EMS experience, with a semiconductor assembly and testing facility and a bare board PCB plant,” Panicker stated, adding that the company is establishing the plant in Chennai.
Kaynes Technology, with revenues of $450 million and a market cap of $5 billion, serves over 360 customers. The company operates 13 EMS facilities worldwide, with 10 in India across Karnataka, Telangana, and Himachal…
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