Kaynes To Establish 12 OSAT Lines, Focus On Vertical Integration

- Advertisement -

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.

- Advertisement -

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.

Raghu Panicker, CEO, Kaynes Semicon

 End-To-End Play

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.

Also Read: SiC Done, CDIL To Introduce GaN In India Next: Pankaj Gulati

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.

Future Phases

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.”

- Advertisement -

Most Popular Articles

Mukul Yudhveer Singh
Mukul Yudhveer Singh
Mukul Yudhveer Singh is an Editor at EFY. He’s an experienced business journalist who is both an enthusiast and a cynic of technology. Believes in data, as well as hunch-based journalism. He defines journalism as- reporting facts which help the audience take their own decisions, not ones that influence them!

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Saurav Kumar Singh, the Founder of Elecbits

“We Aim To Attract Companies From The US And UK To Manufacture In India...

0
In a discussion with EFY’s Nitisha, Saurav Kumar Singh, the Founder of Elecbits, elaborates on its design and manufacturing procedures. Additionally, he highlights a...

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

Global PC Market Up 3.1% YoY, AI Boom Ahead

0
Predicting an upcoming AI PC demand surge in the year's second half, the global PC market warms up with a 3.1% year-on-year increase in...

Buzz

Toshiba Increases Transformer Capacity, Invests $5 Billion

0
Toshiba increases transformer capacity by 1.5 times and invests $5 billion in India to expand its operations and meet growing demand. On Thursday, Toshiba Group...

BMW Advocates For Open-Source Software, Joins Eclipse SDV Group

0
The German car manufacturer has joined the Eclipse SDV Working Group as a strategic member, enhancing international cooperation on open-source software technologies for contemporary...

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

Important Sectors

Toshiba Increases Transformer Capacity, Invests $5 Billion

0
Toshiba increases transformer capacity by 1.5 times and invests $5 billion in India to expand its operations and meet growing demand. On Thursday, Toshiba Group...

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

BMW Advocates For Open-Source Software, Joins Eclipse SDV Group

0
The German car manufacturer has joined the Eclipse SDV Working Group as a strategic member, enhancing international cooperation on open-source software technologies for contemporary...

TATA POWER RENEWABLE ENERGY & NHPC Partner To Solarise Government Building

0
Tata Power and NHPC partner to install rooftop solar on government buildings, aiming for 100% solarisation by 2025 under PM Surya Ghar Yojana. On Thursday,...

Budget Hydrogen Cell Startup Protonas Secures Funding From Transition VC

0
The company intends to implement its solutions to provide affordable backup power options in North American markets. It also plans to supply fuel cell...

Manufacturing

NITI Aayog Report Urges To Boost Electronics Global Value Chain

0
Aiming for the country to become a global hub for electronics manufacturing, the recent report by NITI Aayog called for interventions, analysing India’s position...

HPL Electric Teams with G Ramway To Make Relay Switches

0
Eyeing India’s self-sufficiency goals, smart meter manufacturer HPL Electric has inked a deal with China-based G-Ramway Technology to boost local manufacturing off switches. Last week,...

Sparsh CCTV Invests $3 Billion To Boost Manufacturing

0
Sparsh CCTV invested $3 billion to enhance production capacity, aligning with 'Make in India' for surveillance equipment, focusing on scaling operations in Kashipur. Sparsh CCTV ...

Cooper Standard Launches Ecoflow For Electric Vehicles

0
This scalable fluid control technology, which can be used across various powertrains, is particularly effective for managing the intricate glycol thermal needs of fully...

Economic Ties Strengthens Between Taiwan And India

0
According to the trade body Chairman, James Huang, Taiwanese firms relocate supply chains from China to India, boosting India’s manufacturing and bilateral trade. As global...