Kaynes SemiCon, Subsidiary of Kaynes Technology, Invests Rs 2,850 Crore in Hyderabad Facility for Semiconductor Assembly and Testing

In a strategic move to bolster its semiconductor capabilities, Kaynes SemiCon, a wholly-owned subsidiary of Kaynes Technology, is set to invest Rs 2,850 crore in a state-of-the-art facility in Hyderabad. The facility will focus on Outsourced Semiconductor Assembly and Testing (OSAT), featuring 13 production lines, along with dedicated lines for Automatic Test Equipment (ATE) and reliability testing.

Groundbreaking Ceremony:

 The groundbreaking ceremony for the Hyderabad facility recently took place, marking a significant milestone for Kaynes SemiCon. The expansive facility is designed to accommodate the growing demand for semiconductor services.

Additional Investments:

 Apart from the Hyderabad venture, Kaynes SemiCon will inject Rs 83.28 crore into a Research and Development (R&D) facility in Mysuru, specifically targeting silicon photonics for co-packaged optics. Additionally, Kaynes Technology, the parent company, is committing Rs 750 crore for a bare board printed circuit board plant in Mysuru.

Company Overview:

 Kaynes Technology, based in Mysuru, currently boasts a workforce of 3,500 employees and an annual revenue of Rs 1,665.71 crore. The company's recent Initial Public Offering (IPO) has garnered a market value of Rs 14,418 crore based on its closing stock price of Rs 2,479.80 on the BSE.

Expansion Plans: 

Raghu Panicker, the CEO of Kaynes SemiCon, revealed that the company is expanding its Electronics Manufacturing Services (EMS) infrastructure in Mysuru over 17 acres of land, in addition to the bare board PCB plant.

Approval Process:

 While awaiting approvals from the Ministry of Electronics and Information Technology for the OSAT facility in Hyderabad and the R&D center in Mysuru, Panicker anticipates positive responses before Christmas. State governments, including Telangana, have already granted approvals, with a 25% subsidy for the OSAT project and an additional 50% subsidy under the India Semiconductor Mission $10 billion incentive scheme.

Workforce Development:

 To address the lack of a trained workforce, Kaynes SemiCon has initiated certification courses with institutions such as the Indian Institute of Technology-Mumbai and Birla Institute of Technology Pilani. Collaborative programs with IIT-Hyderabad and the India Electronics and Semiconductor Association are also in progress to sponsor students for BTech and MTech programs in packaging and VLSI.

Future Prospects: 

The company is considering the establishment of a volume production line for silicon photonics in Mysuru and is exploring opportunities with other state governments such as Odisha, Noida, and Gujarat.

Leadership Perspective:

 Savitha Ramesh, Chairperson of Kaynes, emphasized the company's commitment to research and development, considering it a cornerstone of their success. Ramesh Kannan, Managing Director of Kaynes Technology, highlighted plans to bring experienced OSAT leaders from southeast Asia and Taiwan to create a robust ecosystem of trained professionals in India.

Courtesy by: The Economic Times