Mysuru-based Kaynes invests $340 million in Hyderabad chip unit

Homegrown electronics manufacturer Kaynes Technology is investing ₹2,850 crore ($342 million) to set up an outsourced semiconductor assembly and test (OSAT) and compound semiconductor facility near Hyderabad in Telangana. 

The Mysuru-headquartered company will establish the facility through its subsidiary, Kaynes Semicon. With this, the company is expanding into assembly, test, mark, and pack (SAT/ ATMP) services. 

Kaynes Semicon chief executive Raghu Panicker said the Hyderabad facility will have 13 lines for OSAT, besides one each for automatic test equipment (ATE) and a reliability testing line. 

The groundbreaking ceremony for the facility was held recently. The announcement was first made in October after a meeting between Telangana minister KT Rama Rao and the company’s leadership, including managing director Ramesh Kannan and chairperson Savitha Ramesh. 

Kaynes is a 30-year-old company that offers end-to-end electronics design and manufacturing services to its clients in various sectors. With a workforce of 3,500 people, the company operates eight manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. It has an annual revenue of ₹1,665.71 crore ($200 million). 

Besides a new manufacturing facility in Hyderabad, Kaynes SemiCon will also invest ₹83.28 crore ($10 million) in a research and development facility for silicon photonics for co-packaged optics in Mysuru, Panicker announced.