Kaynes SemiCon Makes History with First Paying OSAT Customer in India
Kaynes SemiCon, a wholly owned subsidiary of Kaynes Technology, has made history by securing India’s first paying customer for outsourced semiconductor assembly and test (OSAT) services. The company signed a memorandum of understanding (MoU) with Lightspeed Photonics, a Singapore-based fabless system development company specializing in advanced optical interconnect technologies.
This strategic partnership marks a significant milestone for India’s burgeoning semiconductor ecosystem. The collaboration will see Kaynes SemiCon provide advanced packaging solutions for Lightspeed Photonics, including high-volume runs at its new facility in Hyderabad. CEO Raghu Panicker emphasized the importance of this agreement, stating, “This is the first paying OSAT customer in India.” The company will initially conduct sample runs and low-volume production at its proto line in Mysore/Hyderabad before scaling up to high-volume manufacturing once its new facility is fully operational.
India Enters High-Value Semiconductor Manufacturing
The deal is particularly noteworthy as it signifies India’s entry into the high-value segment of semiconductor manufacturing – advanced packaging. With the global semiconductor industry increasingly focusing on advanced packaging technologies such as silicon photonics, Kaynes SemiCon’s foray into this space positions the company as a key player in the global supply chain. Panicker revealed that the company has already identified and aligned the necessary equipment for the project, with installation planned at the proto line in Mysore/Hyderabad and eventually at its upcoming facility. “We have engaged with our equipment suppliers and are set to consign the equipment at their facilities. This will allow us to start rolling out packages for Lightspeed Photonics within four to five months,” he added.
Kaynes SemiCon expects final approval from the Indian government for its OSAT services soon, allowing it to proceed with its plans. “Approval may come in about a week’s time,” Panicker stated, highlighting the company’s readiness to meet the stringent requirements of advanced semiconductor packaging.
Capacity Building and Workforce Development
In addition to the partnership with Lightspeed Photonics, Kaynes SemiCon has signed an agreement with the VLSI Society of India for capacity building. This initiative aims to develop a skilled workforce for India’s semiconductor industry by partnering with educational institutions to provide training in semiconductor manufacturing. Perceptives Solutions will serve as the implementation partner for this project.
Satya Gupta, President of the VLSI Society, emphasized the intention “to make India a world-class electronics and semiconductor product nation.” Bhanupriya K, MD of Perceptives Solutions, also stressed the need to train students in the area of semiconductor manufacturing processes. Through this MoU, Kaynes SemiCon will open up its OSAT facility for packaging free of cost to educational institutions aligned with the VLSI Society of India.
India’s Ambitious Semiconductor Plans
These dual MoUs arrive at a pivotal time for India, which is aggressively pursuing its ambitions to become a global semiconductor hub. With the government’s push towards self-reliance in electronics and a US$10 billion incentive scheme to attract semiconductor manufacturing investments, India is poised to play a larger role in the global semiconductor supply chain. So far, India has granted approvals for three major semiconductor projects, including a wafer fabrication facility and an OSAT plant by Tata Group, as well as a separate OSAT facility by Murugappa Group’s CG Power and Industrial Solutions.
Recent reports suggest that CG Power has entered into agreements with Japan’s Renesas, a leading semiconductor manufacturer, and Thailand’s Stars Microelectronics, an OSAT provider, to establish an OSAT facility in India. The company plans to invest INR7,600 crore (US$1 billion) over the next five years in this venture.
Kaynes SemiCon’s dual MoUs signify the company’s commitment to supporting the growth of India’s semiconductor industry. The company’s strategic initiatives, focusing on technological advancement and workforce development, position it as a key contributor to the future of semiconductor manufacturing in the region.
