Kaynes Technology pioneers India’s first commercial multi-chip module production

Mysuru-based Kaynes Semicon Pvt. Ltd’s outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, has hit a first milestone, shipping India’s first commercially packaged multi-chip module (MCM) to Alpha and Omega Semiconductor’s (AOS) headquarters in Sunnyvale, California.

The milestone reflects the team’s dedication, rapid execution, and focus on quality, Raghu Panicker, CEO of Kaynes Semicon, said, adding that together with AOS and Mitsui, it “aims to position India as a trusted node in the global semiconductor supply chain.”

Kaynes said the shipment sets a foundation for more sophisticated power modules spanning automotive, consumer electronics, industrial automation, and clean-energy systems.

The Sanand site is designed for up to 6.3 million chips per day at full capacity, with full-scale mass production targeted for January and an early ramp to about 1.5 million chips per day by the end of the first quarter of the next fiscal year.

The company shipped 900 intelligent power modules (IPM5) units to AOS after assembly, test, and quality clearance at Sanand.

An IPM integrates power switches and control circuitry for motor-drive and power-management applications.

The facility is part of the India Semiconductor Mission. The Union cabinet approved Kaynes Semicon’s ₹3,307 crore OSAT project in September 2024, with funding split roughly ₹1,653.5 crore from the Centre (50%), ₹661.4 crore from the Gujarat government (20%), and ₹992.1 crore from the company (30%).

Kaynes said the IPM5 packs 17 tiny chips, including power switches, control chips and diodes, into one small unit, adding that making these parts in India shows growing local capability and could reduce imports over time.

The company first considered building the OSAT plant in Telangana but chose Gujarat instead, where projects by Micron and CG Power are also coming up under central incentives.