Kaynes Tech chooses Telangana for ₹2,800-crore semiconductor OSAT facility

Kaynes Technology to set up a ₹2,800-crore semiconductor facility in Telangana, which will generate 2,000 jobs. An MoU in this regard has been signed with State govt's IT dept. Kaynes Semicon to offer QFN, SOT, TO, BGA and FC BGA packages, with R&D centre in collaboration with IIT-Bombay.

Home-grown electronics contract manufacturing services firm Kaynes Technology will be setting up a ₹2,800-crore semiconductor OSAT (outsourced semiconductor assembly and testing) and compound semiconductor facility in Telangana.

The proposed facility, for which Kaynes Technology and the State government’s IT department have signed an MoU, will come up adjacent to the upcoming electronics manufacturing facility of Foxconn in Kongara Kalan. It will create direct employment for over 2,000 people.

“Proud moment for Telangana as we now join the league of coveted global destinations that host semiconductor industry. Recent investments from global leaders such as Foxconn and Corning have reinforced Telangana as the preferred destination for electronics manufacturing,” Minister for Industries and IT K.T. Rama Rao posted on X (formerly Twitter) after a meeting with Kaynes chairperson Savitha Ramesh and managing director Ramesh Kannan here in the presence of senior officials.

Telangana is committed to developing a semiconductor ecosystem in the State and emerging as a destination of choice for the industry owing to the supporting infrastructure, proactive governance, rich research and development ecosystem and availability of a skilled talent pool, he said in a release.

Kaynes Technology is foraying into OSAT/ATMP services under its subsidiary Kaynes Semicon, which will be supporting customers worldwide in QFN, SOT, TO, BGA and FC BGA kind of packages in the first three years for power devices. The subsidiary is also setting up a research and development centre for package research in collaboration with IIT-Bombay.

“We are very excited to work with the Telangana government for our OSAT/ATMP plant in Hyderabad,” Mr. Ramesh Kannan said. Industries and IT Secretary Jayesh Ranjan, TSIIC vice-chairman and MD E. Narsimha Reddy, Director Electronics Sujai Karampuri and Kaynes Semicon CEO Raghu Panicker were present during the meeting.