Semiconductor Manufacturing Inevitable For India's Growth, Says Kaynes Technology
Kaynes Technology signed a Memorandum of Understanding with the Karnataka government for Rs 3,750 crore.
Semiconductor manufacturing is inevitable for India's growth, with only 0.2% of India's demand being manufactured domestically, according to Ramesh Kunhikannan, managing director at Kaynes Technology India Ltd.
With Outsourced Semiconductor Assembly and Testing facilities, India may grow in tandem with Taiwan, Malaysia and China, according to Kunhikannan. "India is being looked at as an active and innovative player today," he told BQ Prime's Niraj Shah.
Kaynes Technology signed a Memorandum of Understanding with the Karnataka government for Rs 3,750 crore for a printed circuit board manufacturing plant—as part of backward integration—and a semiconductor assembly and testing facility. The company is tying up with a technology partner for its OSAT and already has a few customers lined up.
The electronics systems and design manufacturer is expecting to cross the Rs 2,000 crore revenue mark with the latest MoU, said Kunhikannan.
The investment is expected to further boost 30-50% revenue compound annual growth rate guidance for the next three years, said Chief Executive Officer Rajesh Sharma.
CEO Rajesh Sharma, and Ramesh Kunhikannan, managing director of Kaynes Technology. (Source: Company website)
The company plans to start production in both plants in 15 months and expects the benefit to flow in from the second half of FY25 and early FY26, said Sharma.
The investment is expected to take place in three phases. The first phase for the printed circuit board plant would require an investment of Rs 400 crore, which has already been raised.
For the semiconductor facility, the first phase of Rs 1,500 crore will be 70% funded by the central and state government through subsidies, while the rest will be funded as a combination of equity and debt.