The ground-breaking ceremony for the facility was conducted last week in Hyderabad, Telangana. Kaynes aims to start PoC in April 2024
At its upcoming Outsourced Semiconductor Assembly and Test (OSAT) and Compound Semiconductor facility near Hyderabad, Telangana, Kaynes Semicon plans to set up 12 lines. This subsidiary of Kaynes Technology is poised to witness an investment exceeding Rs 2800 crore for this initiative. Globetronics and UST have also invested in the facility.
“The first phase of the investment and building of the OSAT has begun. Everything will be ready by April 2024. We will start the PoC for one of our customers during the first week of April. With the move we will also expand our EMS services in Mysore. We will also establish a PCB facility in Mysore,” Raghu Panicker, CEO of Kaynes Semicon, told Electronics B2B in an exclusive conversation.
Additionally, the company is scheduled to establish four lines in the first quarter of FY24, another four in the second quarter, and another four in the third quarter. Kaynes Semicon anticipates the production of a minimum of one billion devices following the deployment of these lines.
The company will start with power devices for the automotive vertical. Essentially, power devices for other segments such as health, industrial, consumer electronics, IoT, and more will form the crux.
Alongside providing semiconductors to various entities, Kaynes Semicon aims to utilise a significant portion of the output from the forthcoming Kaynes Semicon OSAT within its own EMS unit.The company’s roster of partners boasts names such as Infineon, Intel, Qualcomm, Adani, Uno Minda, Tata Communications, Havells, Siemens, and numerous others.
“The idea is to enable as much vertical integration as possible, and Kaynes Semicon is one of the steps in that direction,” Panicker explained. The company also plans to start an R&D unit at the OSAT shortly to work on the “future” of electronics.
To drive the vision of vertical integration, the company will continue to expand and invest in R&D for advanced packaging technologies, material systems and heterogeneous integration in Mysore. These include multi-die chiplets, 2.5D, 3D-IC, high-density optical assembly, test and system manufacturing. Its broader plans include being able to design and manufacture everything that goes on to a PCB.
To summarise, the Kaynes electronics manufacturing ecosystem encompasses 12 Surface Mount Technology (SMT) lines, 57 Through Hole Device (THD) lines, 11 cable harness lines, 15 plastic moulding machines, and exclusive RoHS-compliant lines dedicated to environmentally friendly manufacturing practices.
Panicker also mentioned that before the end of December 2023, eight new Surface Mount Technology (SMT) lines will be integrated in Chamarajanagar, Mysore, at the new upcoming Integrated facility. According to Savitha Ramesh, Chairperson of the Board at Kaynes Technology, the forthcoming OSAT facility is slated to be world-class, equipped with cutting-edge technology and advanced machinery.
As per the ‘India Semiconductor Market Report, 2019-2026,’ a collaborative study by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research, it is projected that India’s semiconductor component market will witness a cumulative revenue surge to $300 billion between 2021 and 2026.
Krishna Moorthy, CEO and President of IESA, emphasised in the report, “Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous ‘chip’. Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive.”
“We aim to be nothing less than India’s number one OSAT in the future. This will be achieved by the quality and quantity we can put in the hands of our partners,” Panicker highlighted.
Although the company is still waiting to disclose specific details regarding the phases of semiconductor and electronics manufacturing it intends to undertake in the coming years, Panicker believes that Kaynes is poised to be one of the leading EMS companies in the foreseeable future.
“We are already doing EMS, and we will do systems, modules, and packages as well. The only thing left after that is integration. That is all I can say for now,” he explained.
Last year, Kaynes Technology floated its IPO. Notable institutional investors participating in the IPO encompass Nomura, Goldman Sachs, PSP Investments, Norges Bank, CARMIGNAC, BNP Paribas, Acacia, and several others. The company, along with all its subsidiaries, provides a range of services, including Product Design and Engineering, ODM (Original Design Manufacturer), OEM (Original Equipment Manufacturer), and IoT (Internet of Things) Solution services.
During the last fiscal year, the company recorded revenues exceeding $200 million, with an estimated valuation of approximately $1.4 billion. The leadership of Kaynes Semicon anticipates the commencement of reporting robust revenue figures within the initial fiscal year of operations. The ground-breaking ceremony for the facility was conducted earlier this week in Hyderabad, Telangana.
The company’s technology allies include Globetronics, spearheaded by Charng Yee, bringing many packaging technologies. Its delivery collaborator, Ponni Tech, is a consortium of experts under the leadership of Raja Manickam. UST, prominent ATE experts, directed by Gilroy Mathews, are its Market outreach partners.
“The infrastructure demands of AI in hyperscale datacentre require critical R&D investments in advanced packaging, optical integration and test. We at MixxTech are excited about Kaynes’ vision in leapfrogging into silicon to systems integration, leveraging their EMS, OSAT and other offerings”, Vivek Raghuraman, CEO, MixxTech Inc.
Infinipack, led by Murthy and Suresh Subramanian, is its packaging associate. It calls IESA an industry comrade. Its research affiliates include IIT Mumbai’s Professors, namely Swaroop, Udayan, and Veeresh. Advanced Packaging is led by Mixx Tech and guided by Vivek Raghuraman, who specialises in co-packaged optics.
Ramesh Kannan, Managing Director of Kaynes Technology, expressed, “We hold a highly positive outlook for this market, as it presents us with substantial opportunities to cater to our semiconductor clientele through our OSAT facility. By incorporating OSAT capabilities, we aim to deliver a more comprehensive and integrated solution to our esteemed customers.”