By July, Kaynes Expected to Deliver India's First Packaged Chip

By July, Kaynes Semicon, a business situated in Mysuru, may become the nation's first manufacturer of packaged semiconductor chips. This would be a significant milestone for the India Semiconductor Mission 1.0. The schedule was confirmed by senior government officials and Kaynes CEO Raghu Panicker. According to Panicker, the clean room facilities and machinery are expected to be finished by early May, and the pilot line is "almost" finished. According to him, the first samples will be delivered to the US semiconductor company Alpha Omega Semiconductor in July, while qualification testing is scheduled for June. According to Panicker, prior to the permission, the company had been getting ready for clients, technological partners, and building designs.

Kaynes' Planning for the Future

The cabinet gave Kaynes permission in September of last year to invest INR 3,307 crore in the establishment of an outsourced semiconductor assembly and test (OSAT) plant in Sanand, Gujarat. The facility will be able to make 6.3 million chips every day. Alpha Omega Semiconductor and Kaynes have reached a multi-year deal for Kaynes to package and test 12 distinct packages. These consist of a power MOSFET, an insulated-gate bipolar transistor, and an intelligent power module (IPM). Initial production samples will be sent by the company for assessment in July and August. The company has inked a definitive multi-year arrangement with Alpha Omega Semiconductor, and in the first phase, they would use about 60% of its capacity, Panicker told a media house. Kaynes anticipates making millions of dollars during the course of the multi-year agreement.

Three Other Firms Received Approval from the Centre

The cabinet also approved three more companies: Micron, Tata Electronics, and CG Power. Additionally, Tata Electronics is establishing the first wafer production facility in India. Tata Electronics obtained cabinet permission for its OSAT and fab in February of last year. Meanwhile, Micron gained cabinet approval for its ATMP in June 2023. In February of last year, the cabinet also approved CG Power's OSAT. According to Panicker, Kaynes has four customers lined up in addition to Alpha Omega, including in the US and Japan. The company will shortly reveal its second customer. The company will concentrate on high-voltage packages for satellites and air conditioners. With a new PCB facility in Tamil Nadu and other projects in Madhya Pradesh and Odisha, Kaynes is also growing its presence. With this sector, Kaynes will make its debut in the state of Tamil Nadu, where the facility will concentrate on bare board PCBs.

Panicker stated, "We are considering our options in Odisha and Bhopal (Madhya Pradesh)," suggesting that these initiatives would also fall within the semiconductor industry but not PCB production. 50% of the investment in the Kaynes chip assembly factory, or INR 1,653.5 crore, would come from the Centre, with the Gujarat government providing the remaining 20%. The company is making the remaining 30% of the investment, or INR 992.1 crore. However, the corporation and the central government have not yet signed the fiscal assistance agreement. In December 2023, Kaynes raised money for the same purpose.