Kaynes Technology Expands into Semiconductors to Bolster EMS Capabilities.

Kaynes Technology Expand : Strategic Move to Achieve Full Industry Integration

Kaynes Technology India, a leading Electronics Manufacturing Services (EMS) provider, is embarking on a transformative expansion plan to position itself as a fully integrated player in the electronics industry. The company’s strategy revolves around the establishment of a semiconductor manufacturing facility, a move that signifies its commitment to advancing India’s electronics manufacturing ecosystem.


Semiconductor Manufacturing: The Next Frontier

Kaynes Technology is gearing up to enter the semiconductor space with plans to establish a state-of-the-art manufacturing facility. Speaking about the project, Jairam Sampat, Whole-Time Director and CFO of Kaynes Technology, stated:
“We are in the process of setting up the buildings for our semiconductor factory. By early next year, we aim to complete proof of concept, with commercial production anticipated between January and March.”

This facility will focus on the production of printed circuit boards (PCBs), particularly high-density PC boards. These developments align with government efforts, such as the proposed Rs 40,000 crore incentive package by the Ministry of Electronics and Information Technology (MeitY) to promote non-semiconductor electronic components.


Diversifying Capabilities with Semiconductor Assembly and Test

In addition to semiconductor manufacturing, Kaynes is launching a new outsourced semiconductor assembly and test (OSAT) project. This venture is set to enhance the company’s capabilities in semiconductor assembly and testing, which are critical for the production of advanced electronics.

Kaynes is also exploring opportunities in modules and related areas, further diversifying its portfolio and strengthening its position in the global electronics supply chain.


Strengthening India’s Electronics Manufacturing Ecosystem

Kaynes Technology’s expansion aligns with the Indian government’s vision to boost domestic electronics manufacturing. By integrating semiconductors into its EMS offerings, Kaynes not only aims to reduce dependency on imports but also to cater to growing demand across industries like automotive, telecommunications, and consumer electronics.


Why This Matters

  1. Technological Advancement:
    Kaynes’ focus on high-density PCBs and semiconductors supports India’s transition into a global electronics hub.
  2. Economic Growth:
    The establishment of the semiconductor facility contributes to local manufacturing, job creation, and export potential.
  3. Self-Reliance:
    With government incentives and private sector participation, the initiative strengthens India’s goal of achieving self-reliance in electronics manufacturing.

Key Takeaways

  • Facility Timeline: Proof of concept by early 2025; commercial production by March 2025.
  • Focus Areas: High-density PCBs, semiconductor assembly, and testing.
  • Government Support: Rs 40,000 crore incentive package by MeitY for non-semiconductor components.
  • Strategic Advantage: Diversification into semiconductors complements Kaynes’ EMS capabilities, enhancing its global competitiveness.


FAQs : Kaynes Technology

1. What is Kaynes Technology’s new project?

Kaynes is establishing a semiconductor manufacturing facility and launching an OSAT (outsourced semiconductor assembly and test) project to enhance its EMS capabilities.

2. When will the semiconductor facility begin production?

The facility is expected to achieve proof of concept by early 2025, with commercial production starting by March 2025.

3. How does this align with India’s electronics policies?

The expansion aligns with India’s push for self-reliance in electronics manufacturing, supported by the government’s proposed Rs 40,000 crore incentive for non-semiconductor components.

4. Why is semiconductor manufacturing important for Kaynes?

Semiconductors are critical for modern electronics. By entering this space, Kaynes can reduce dependency on imports, improve supply chain efficiency, and strengthen its global market presence.

5. What industries will benefit from Kaynes’ semiconductor production?

The automotive, telecommunications, consumer electronics, and industrial electronics sectors will benefit from Kaynes’ advanced semiconductor and PCB capabilities.



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