Kaynes Technology Invests Rs 5,000 Cr in New Chip Plant in Gujarat, Expanding Semiconductor Capabilities

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Kaynes Technology, an end-to-end and IoT solutions-enabled integrated electronics manufacturer, has bought land in Sanand, Gujarat, to build a new outsourced semiconductor assembly and test (OSAT) unit. Based on the growing demand from potential customers, the company hopes to put about Rs 5,000 Cr (over $596 million) into this chip project.

Even with this major expansion, Kaynes will continue to operate at its current unit in Telangana, which will have several chip assembly lines. The Gujarat factory will be used to test and put together advanced chips. The unit in Telangana will only do electronics manufacturing services (EMS), which will include producing printed circuit boards (PCBs).

This comes after Kaynes invested Rs 2,800 Cr in a similar OSAT center in Telangana earlier this year. Foxconn, Wistron, Tata Electronics, and Kaynes Technology have all recently made significant investments in India, which is part of a broader trend of electronics companies expanding their position there.

Notably, Uttar Pradesh has gotten more than Rs 40,000 Cr in promises to invest in making semiconductors under its new policy. Companies like Tarq Semiconductor and Kaynes Semicon have proposed significant investments.

Click here to learn more about Kaynes Technology.