Homegrown Firm Kaynes Technology To Drive India's Semiconductor Innovation With Rs 2,800 Crore Investment In Telangana

Kaynes Technology has announced its plans to invest Rs 2,800 crore in the establishment of a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility in Kongara Kalan, near Hyderabad.

The 30-year-old homegrown electronics contract manufacturing services company aims to expand its services into OSAT/ATMP, through its subsidiary, Kaynes Semicon.

This facility, will come up on a 40-acre parcel of land, located near the Taiwanese manufacturing giant Foxconn's upcoming facility and is expected to create employment opportunities for 2,000 individuals, reports Times of India.

Through Kaynes Semicon, the company aims to provide support to customers worldwide in the areas of — QFN (Quad Flat No-leads Package), SOT (Small Outline Transistor), TO (Transistor Outline), BGA (Ball Grid Array), FC BGA (Flip-Chip Ball Grid Array) kind of packages for power devices in the first three years, a government official said.

ITE&C and Industries Minister, K T Rama Rao, met Kaynes Managing Director Ramesh Kunhikannan and Chairperson Savitha Ramesh to announce the setting up of the facility in the state.

“We are very excited to work with the Government of Telangana for our prestigious OSAT/ATMP plant in Hyderabad. The speed at which team Telangana worked is unmatched and unparalleled,” Kunhikannan said.

Kunhikannan added, “India is being looked at as an active and innovative player today, and with outsourced semiconductor assembly and testing facilities, India may grow in tandem with Taiwan, Malaysia, and China,”, according to BQPrime report.

The electronics contract manufacturer earlier signed a MoU with the Karnataka government for Rs 3,750 crore to set up a semiconductor assembly and testing facility and a printed circuit board manufacturing plant through the company's step-down subsidiaries.

Further, Kaynes Semicon plans to establish a research and development centre for package research in collaboration with IIT Bombay.