Kaynes SemiCon To Fund Rs 2,850 Crore in Chip Unit By CIOTechOutlook Team

Kaynes SemiCon To Fund Rs 2,850 Crore in Chip Unit

CIOTechOutlook Team | Thursday, 09 November 2023, 02:39 IST

Kaynes SemiCon, a wholly owned subsidiary of Kaynes Technology, would spend Rs 2,850 crore in a Hyderabad facility for outsourced semiconductor assembly and testing (OSAT), complete with automatic test equipment (ATE) and a reliability testing line, according to chief executive Raghu Panicker.

The groundbreaking ceremony for the facility that will have 13 lines for OSAT, and one each for ATE and reliability testing was held recently. Kaynes SemiCon will also invest Rs 83.28 crore in a research and development facility for silicon photonics for co-packaged optics in Mysuru. Parent Kaynes Technology is also making an investment of Rs 750 crore in Mysuru for a bare board printed circuit board plant, as per economic times.

Kaynes Technology, situated in Mysuru, has a staff of 3,500 workers and an annual turnover of Rs 1,665.71 crore, according to Panicker. The business that went public last year had a market value of Rs 14,418 crore based on its closing stock price of Rs 2,479.80, up 1.1%, on the BSE on Wednesday. Kaynes is a 38-year-old electronics manufacturing services (EMS) firm having facilities in Mysuru, Bengaluru, Chennai, Pune, Manesar, and Parwanoo, as well as service centers in Mumbai and Kochi.

“We are setting up an additional capacity for EMS infrastructure spread over 17 acres of land in Mysuru apart from a bare board PCB plant,” Panicker added.

Panicker said the business is a couple of months away from receiving clearances from the Ministry of Electronics and Information Technology for its OSAT facility in Hyderabad and the R&D center in Mysuru.

“We submitted the detailed project report in mid-October and technology partner agreements with Malaysia, Taiwan and the US. Before Christmas, we are expecting approvals to come through,” he said.