Kaynes Semicon to have 1 billion chip volume, says CEO

Kaynes Semicon, the semiconductor arm of Kaynes Technology, is targeting to have 13 chip assembly and test lines over the next 1.5-2 years with a volume of 1 billion chips annually, the company’s CEO Raghu Panicker told sourves.

Kaynes Semicon is close to receiving approval on its chip assembly and test – OSAT (outsourced semiconductor assembly and test) unit in Telangana under the government’s Rs 76,000 crore semiconductor incentive scheme.

In October last year, Kaynes announced its plans to invest Rs 2,800 crore in the OSAT facility in Telangana. The company has already started construction at the plant.

From its first OSAT plant, the company is primarily looking to serve automotive electric vehicle (EV) and industrial segments. The plant will have a couple of chip assembly lines.

The company will do legacy semiconductor packages like quad flat no-leads (QFN) and small outline transistor (SOT), suitable for consumer electronics, automotive designs and power applications. 

Besides, it will also get into substrate-based semiconductor packages like Ball Grid Array (BGA), which have solder ball pins, used in electronic products to mount integrated circuits such as microprocessors.

We are suppliers of modules in the EMS (electronics manufacturing services) to automotive, EV. 

The company has tied-up with Japan-based semiconductor company AOI, which will come on board as a technology partner for the OSAT facility.

The company is in talks with a couple of semiconductor OEMs (original equipment manufacturers) for exports from the Telangana factory. 

With regard to the Telangana OSAT plant, the company started the construction in October.

Kaynes expects to start the Telangana facility in April. However, a major scale up and revenue opportunity for the company is expected to come in FY26, it had said during the earnings call last month. 

In the next phase, the company is looking for advanced packaging and component semiconductors, and is also expected to loop in other technology partners.

The company is hopeful of getting approval on the semiconductor project from the government soon.