Whalesbook
Kaynes Semicon has launched its new outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, aiming to secure a significant share of the global semiconductor market. The company forecasts revenue to reach $50-60 million this year, a significant jump from $9 million in the previous year. Growth is driven by a strong pipeline of 22 customers, with six already confirmed, who will utilize 30-35% of the plant's current capacity.
Advanced Module Production
The Sanand facility is set up to produce advanced intelligent power modules and power MOSFETs. These components are critical for electric vehicles, home appliances, energy solutions, and even aerospace applications. Around 80% of the plant's output is destined for export markets, underscoring India's expanding role in high-tech manufacturing. The facility has a capacity of over 2 billion units annually, with plans for Unit 2 and Unit 3 already in motion.
Rapid Deployment and Investment
Kaynes Semicon swiftly established its OSAT plant in Sanand, Gujarat, under the India Semiconductor Mission (ISM) 1.0 framework. Ground was broken in December, with the cleanroom becoming operational by April-May 2025, followed shortly by equipment acceptance. The company shipped its first components in October 2025 and began production in March 2026, far exceeding typical international timelines for plant setup and qualification. The investment in Unit 1 totals approximately ₹600 crore, supported by a team of 150 experts and new hires.
Government Support and Talent Acquisition
The company has secured government incentives under the ISM and state schemes, with fiscal support agreements signed in January and quarterly payouts proceeding smoothly. Kaynes Semicon is building a local talent pool via university partnerships and seeking to attract Indian talent from abroad, though matching US salaries presents a challenge. This approach positions Kaynes Semicon as a key player in India's growing semiconductor industry.