Electronics manufacturer Kaynes Technology has reportedly bought land in Gujarat’s Sanand to build its outsourced semiconductor assembly and test (OSAT) unit
The company is also in plans to invest about INR 5,000 Cr (over $596 Mn) for its chip project
Kaynes, however, is not shelving its Telangana unit and will have a couple of chip assembly lines there, while the advanced chip assembly and test project will get operated from Gujarat, as per a company executive
Electronics manufacturer Kaynes Technology has reportedly bought land in Gujarat’s Sanand to build its outsourced semiconductor assembly and test (OSAT) unit.
As per FE’s report, citing sources close to the matter, the company plans to invest about INR 5,000 Cr (over $596 Mn) for its chip project, banking on the growing demand from its potential customers.
Inc42 has reached out to Kaynes Technology for a comment on the development. The story will be updated based on the response.
This development follows its initial investment of INR 2,800 Cr to set up a similar OSAT facility in Telangana, as per multiple news reports.
Kaynes, however, is not shelving its Telangana unit and will have a couple of chip assembly lines there, while the advanced chip assembly and test project will get operated from Gujarat, the Financial Express report quoted a company executive as saying.
The Telangana unit will largely be utilised for EMS (electronics manufacturing services) by Kaynes that includes PCB (printed circuit board) manufacturing, among other components.
Based in Mysore, Kaynes Technology is an electronic device manufacturing company that specialises in railway signalling, robotics, patient monitoring systems, aerospace products and such.
It is pertinent to note that several electronics companies have significantly expanded their footprint in India, with Foxconn, Wistron, Tata Electronics, and Kaynes Technology leading this trend.
For instance, the Uttar Pradesh government received commitments worth INR 40,038 Cr under its new semiconductor policy that aims to incentivise chip manufacturing in the state, where real estate major Hiranandani Group’s Tarq Semiconductor submitted a proposal to invest INR 28,440 Cr in the state, while Kaynes Semicon (subsidiary of Kaynes Technology) is expected to invest INR 4,248 Cr.
