Kaynes Technology, an end-to-end and IoT solutions-enabled integrated electronics manufacturing player is investing US$454 million (S$615 million) for two Semicon projects in India.
Incorporated in 2008, the company provides conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in automotive, industrial, aerospace, defence and many other segments.
In its regulatory update on exchanges, Kaynes Technology said it has signed a deal with the Karnataka government to set up a Semiconductor Assembly and testing (OSAT) facility and Printed Circuit Board (PCB) manufacturing plant through its step-down subsidiaries.
OSAT refers to a third-party service that suppliers around the world offer, which consists of semiconductor assembly, packaging and testing of ICs (Integrated Circuits, according to Anysilicon.
Due to the high costs of building and operating more massive production lines, manufacturers are more inclined to outsource these services to focus on core operations of designing and engineering.
Kaynes Technology CEO Rajesh Sharma told BQ Prime that the company would make the investments in three phases, with US$181 million assigned for the first phase.
It is at the new PCB plant with an "immediate" investment of US$48 million for producing complex multi-layered boards.
Sharma said almost 70 percent of the investments are coming from Indian government subsidies for semiconductor manufacturing.
He expects both facilities to be commissioned and produced by the later half of 2025 and early 2026.
