First chip from Gujarat's ₹3,300cr semiconductor facility eyes 2025 launch
What's the story
Kaynes Semicon, a subsidiary of Kaynes Technology, is set to produce its inaugural commercial chip from its new outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat.
The company aims to launch this product by March 2025.
This development follows the Modi government's approval of Kaynes's ₹3,300 crore facility, under the ₹76,000 crore India Semiconductor Mission yesterday.
Revenue forecast
Projected $250 million revenue within 4 years
Kaynes Semicon's CEO, Raghu Panicker, has outlined an ambitious revenue projection for the company.
He expects to generate around $10 million in revenue this fiscal year, and aims to reach a staggering $250 million within four years.
This forecast is based on anticipated business from 10-12 customers.
Panicker also revealed plans for 13 chip assembly and test lines over the next two years, with an annual volume of one billion chips.
Strategic partnerships
Collaboration with global tech partners
Kaynes Semicon has formed strategic alliances with three global technology firms: Globetronics from Malaysia, AOI from Japan, and Aptos Tech from Taiwan.
These partnerships are expected to bolster the company's chip production capabilities.
The collaborations are part of a broader national initiative to establish semiconductor units across India, with four such facilities currently under construction in Gujarat and Assam.
Employment boost
Kaynes Semicon's Gujarat facility to create jobs
Kaynes Semicon has already recruited around 30 important executives for its new unit, including 15 expatriates from the Philippines, Malaysia, and Taiwan.
By March 2025, the company plans to employ approximately 450 workers across various roles at the Gujarat facility.
This move is expected to significantly boost local employment opportunities in the region.
Business agreement
Kaynes Semicon signs deal with Lightspeed Photonics
Kaynes Semicon has officially partnered with Lightspeed Photonics, a Singapore-based fabless system development company, for its Gujarat unit.
The other two buyers are from Taiwan and the US.
This partnership is expected to further strengthen Kaynes Semicon's position in the global semiconductor market.