Karnataka’s KASFAB Tools Launches State-of-the-Art Semiconductor Manufacturing Facility.

KASFAB Tools, a new venture by the KAS Group, inaugurated its cutting-edge semiconductor manufacturing facility on January 27 in Dodaballabpur, about 45 km from Bengaluru. With a focus on tapping into the $125-billion global semiconductor market, the facility marks a significant milestone for India’s semiconductor ecosystem.


Key Highlights

  1. Multi-Million-Dollar Order:
    • The company has secured a significant contract for specialised semiconductor process equipment, according to Managing Director Manjunath Jyothinagara.
    • This contract will serve as a foundation for scaling up production capacity in the near future.
  2. Facility Overview:
    • Initial Investment: ₹20 crore invested, with plans to scale up to ₹250 crore.
    • Focus: Manufacturing legacy semiconductor equipment at its 20,000 sq. ft. facility.
    • Features:
      • Cleanroom environments (Class 10 and Class 100).
      • High-precision welding for metals and plastics.
      • Component fabrication.
      • Ultrasound-aided cleaning with deionized (DI) water.
    • The cleanroom construction cost is approximately ₹25,000 per square foot.
  3. Strategic Positioning:
    • The company aims to serve as a specialised contract manufacturer for global semiconductor giants, providing subsystems or entire equipment.
    • This approach aligns with the global trend, where companies rely on value chain partners for manufacturing critical components.

Industry Perspective

Semiconductor manufacturing is highly intricate, involving 300+ steps and 50-60 specialised materials. This complexity exceeds that of industries like solar panels or optical fiber manufacturing, making KASFAB’s venture a bold move in the sector.

Jyothinagara highlighted the opportunity for Indian MSMEs to make an impact in the global semiconductor ecosystem but stressed the need for greater government support:

“We have consistently advocated for revisions in the PLI scheme to better accommodate MSMEs.”


Karnataka’s Leadership in Technology

Speaking at the inauguration, Karnataka IT and BT Minister Priyank Kharge emphasized:

“This facility reinforces Karnataka’s leadership in technology and engineering excellence. It showcases the state’s commitment to fostering innovation and building an enabling ecosystem for advanced manufacturing.”


Future Plans

KASFAB Tools is poised to expand its footprint in the semiconductor equipment market, leveraging its advanced manufacturing capabilities and aligning with India’s goal of becoming a global semiconductor hub. With substantial investments, a skilled workforce, and support from Karnataka’s innovation-driven ecosystem, the company is set to make significant contributions to the sector.


Conclusion

KASFAB Tools‘ entry into semiconductor manufacturing represents a significant step toward India’s self-reliance in high-tech industries. As the global demand for semiconductors grows, the company’s facility in Karnataka positions it as a key player in this evolving market.

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