UST & Kaynes Semicon partner on a ₹3,330 crore OSAT facility in Gujarat’s Sanand. A strategic move to boost India’s self-reliance in semiconductor manufacturing.
In a landmark move for India’s technology sovereignty, global AI and digital transformation firm UST has announced a strategic investment in Kaynes Semicon to establish a ₹3,330 crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The partnership, announced on September 29, 2026, aims to create a formidable foundation for India in the global semiconductor industry.
This ambitious collaboration brings together Kaynes Semicon’s manufacturing prowess and UST’s global reach and digital engineering expertise to address a critical gap in India’s electronics supply chain.
Building a Self-Reliant Semiconductor Ecosystem
The OSAT facility is a crucial component of the semiconductor value chain, responsible for packaging assembled semiconductor components and testing them for functionality. This new plant will position India to capture a significant part of the global semiconductor market while reducing dependency on foreign facilities.
Krishna Sudheendra, CEO of UST, emphasized the partnership’s strategic importance: “This ambitious partnership between UST and Kaynes Semicon will help shape the future of semiconductor manufacturing in India. Together, our two great companies will harness the strengths of the Indian market and build a formidable foundation for the country to become a key player in the global semiconductor industry.”
A Synergy of Manufacturing and Digital Innovation
The partnership is designed to leverage the unique strengths of both companies. Kaynes Semicon brings its specialized manufacturing capabilities, while UST contributes its global client base and cutting-edge digital tools.
Raghu Panicker, CEO of Kaynes Semicon Private Limited, stated, “Our partnership with UST brings together world-class manufacturing and digital engineering expertise. This enables Kaynes Semicon to deliver advanced OSAT solutions while strengthening India’s self-reliant semiconductor ecosystem.”
UST’s role will extend beyond investment. The facility will integrate the firm’s digital engineering, AI-driven process improvements, and real-time data analysis to enhance operational efficiency, ensure scale and reliability, and minimize hidden costs in the manufacturing process.
Powering the Next Era of Electronics
The new OSAT facility is expected to be a key enabler for several high-growth sectors in India. According to the official release, the partnership will “power the next era of electronics and Electric Vehicles (EVs), renewables, and consumer technology” by providing a local, advanced source for semiconductor assembly and testing.
This investment not only strengthens India’s “Atmanirbhar Bharat” (Self-Reliant India) mission but also creates opportunities for UST’s global semiconductor clients to leverage the benefits of Indian manufacturing, further integrating the country into the worldwide technology supply chain.
