Reference Articles – https://economictimes.indiatimes.com/tech/technology/kaynes-semicon-investing-rs-2850-crore-in-semiconductor-assembly-in-telangana/articleshow/105076721.cms
Introduction:
In a strategic move towards fortifying its position in the semiconductor industry, Kaynes SemiCon, a 100% subsidiary of Kaynes Technology, is set to make substantial investments totaling Rs 2,850 crore in a cutting-edge facility in Hyderabad. The facility will focus on outsourced semiconductor assembly and testing (OSAT), housing automatic test equipment (ATE), and a dedicated reliability testing line, according to the announcement by the company’s CEO, Raghu Panicker.
Key Investments and Initiatives:
A groundbreaking ceremony recently marked the initiation of a facility featuring 13 lines for OSAT, in addition to separate lines for ATE and reliability testing.
The total investment for this ambitious venture is Rs 2,850 crore, showcasing Kaynes SemiCon’s commitment to bolstering semiconductor capabilities.
Research and Development in Mysuru:
An additional investment of Rs 83.28 crore is earmarked for a research and development facility in Mysore, focusing on silicon photonics for co-packaged optics.
The parent company, Kaynes Technology, is concurrently investing Rs 750 crore in Mysuru for a state-of-the-art bare board printed circuit board plant.
Expansion of Electronic Manufacturing Services (EMS) Infrastructure:
Kaynes SemiCon is not only investing in semiconductor facilities but is also expanding its EMS infrastructure with an additional capacity spread over 17 acres of land in Mysore, along with the establishment of a bare board PCB plant.
Approval Process and Subsidies: Ministry of Electronics and Information Technology Approval:
CEO Raghu Panicker stated that the company is awaiting approvals from the Ministry of Electronics and Information Technology for both the OSAT facility in Hyderabad and the R&D center in Mysore.
Detailed project reports and technology partner agreements with Malaysia, Taiwan, and the US have already been submitted, with expectations of approvals before Christmas.
State Government Support:
Both projects have received approvals from the respective state governments, with Telangana providing a 25% subsidy for the OSAT project.
Additionally, a significant 50% subsidy from the central government is anticipated under the India Semiconductor Mission $10 billion incentive scheme upon approval.
Future Plans and Collaboration:
Potential Expansion into Silicon Photonics Production:
Kaynes SemiCon is contemplating the establishment of a volume production line for silicon photonics in Mysuru, with discussions underway with governments in Odisha, Noida, and Gujarat.
Workforce Development Initiatives:
To address the lack of trained workforce in the semiconductor industry, Kaynes SemiCon has initiated certification courses in collaboration with prestigious institutions like the Indian Institute of Technology-Mumbai and Birla Institute of Technology Pilani.
Future plans include partnerships with IIT-Hyderabad and the India Electronics and Semiconductor Association, along with sponsorships for BTech and MTech programs in packaging and VLSI.
Conclusion:
With these substantial investments and strategic initiatives, Kaynes SemiCon is poised to play a pivotal role in advancing semiconductor capabilities in India. The company’s focus on R&D, workforce development, and collaboration with global leaders underscores its commitment to achieving excellence in the semiconductor domain.
