Kaynes Technology, a prominent player in the global electronics contract manufacturing services sector, has announced a substantial investment of Rs 2,800 crore to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Hyderabad. This strategic move is intended to bolster the semiconductor ecosystem and is expected to yield positive outcomes for both the company and the region.

As per reports, the proposed semiconductor OSAT facility will be strategically located in Kongara Kalan, in close proximity to the forthcoming electronics manufacturing facility of Foxconn. This geographical proximity is believed to offer logistical advantages and synergies that will enhance operational efficiency.

In a recent meeting with Kaynes Technology's CMD, Ramesh Kannan, and Chairperson, Savitha Ramesh, Telangana's IT & Industries Minister, KT Rama Rao, unveiled this groundbreaking development. Mr. Rao emphasized the significance of this investment, indicating that it aligns with the state's vision for advancing its semiconductor mission.

This endeavor is expected to result in the creation of approximately 2,000 job opportunities, further contributing to the region's economic growth and employment generation. According to reliable sources, the investment and establishment of the semiconductor OSAT facility are considered a pivotal moment in Telangana's journey toward becoming a prominent hub for semiconductor manufacturing and technology.

In line with Kaynes Technology's expansion strategy, the company's subsidiary, Kaynes Semicon, will play a vital role in delivering OSAT and ATMP (Assembly, Testing, Marking, and Packing) services to clients worldwide. Kaynes Semicon is poised to cater to the specific needs of customers in various package types, including QFN, SOT, TO, BGA, and FC BGA, with a primary focus on power devices.

Furthermore, in a concerted effort to foster innovation and research in the semiconductor domain, Kaynes Technology has disclosed its plans to establish a state-of-the-art Research and Development (R&D) center. This R&D center, developed in collaboration with the esteemed institution, IIT Bombay, will focus on advanced package research.

“Telangana is committed to developing a semiconductor ecosystem in the State and I am delighted to welcome Kaynes’ semiconductor OSAT & compound semiconductor facility to Hyderabad. Telangana is emerging as the destination of choice for the semiconductor industry owing to the supporting infrastructure, proactive governance, rich R&D ecosystem, and availability of a skilled talent pool,” Rama Rao said.

“The proposed investment by Kaynes will be a strategic investment for Telangana and shall further reinforce Telangana’s position as an ideal destination for hosting the semiconductor ecosystem,” he added.  Kaynes Technology CMD Ramesh Kannan, said, “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.”

Savitha Ramesh, who chairs the board at Kaynes, said the new facility will have advanced technology and machinery, making it a top-notch plant. Semiconductors are vital for modern electronic devices and are playing an increasingly important role in the global economy as more people use digital technology. The meeting also included Jayesh Ranjan, who is the Principal Secretary for Industries & IT, E Narasimha Reddy, the Vice-Chairman and Managing Director of TSIIC, Sujai Karampuri, the Director of Electronics, and Raghu Panicker, who is the CEO of Kaynes Semicon.

Image source: Times of India