Kaynes Semicon Starts Chip Production at Sanand OSAT Plant

Kaynes Semicon's Sanand OSAT Now in Commercial Production

Kaynes Semicon, the semiconductor division of Kaynes Technology India Ltd, has commenced commercial production at its outsourced semiconductor assembly and test facility in Sanand, Gujarat, making it the second major chip manufacturing unit to go live under the India Semiconductor Mission, following Micron Technology's ATMP plant in the same industrial area. The ₹3,300 crore facility was inaugurated by Prime Minister Narendra Modi and focuses on advanced semiconductor packaging and testing covering assembly, test, marking and packaging operations across multiple chip types.

Ramp-Up Plan and Peak Capacity

Production at the Sanand plant is scaling progressively. The facility began Phase 1 at approximately 1.5 million chips per day, with the ramp-up plan targeting around 6.3 million chips per day at peak capacity once advanced packaging lines, including flip-chip ball grid array and silicon photonics modules, are fully commissioned and automation investments are in place. Current output is focused on Intelligent Power Modules, compact integrated assemblies that combine 17 chips per module for efficient power switching used in automotive systems and industrial drives.

First Commercial Exports Already Underway

Kaynes Semicon has shipped India's first commercially packaged multi-chip module to Alpha and Omega Semiconductor (AOS), a US-based power semiconductor company, making the Sanand plant one of the few Indian packaging facilities to have achieved an export milestone within months of opening. The commercial relationship with AOS provides Kaynes with a global reference customer and a proven pathway to broader international packaging contracts as capacity scales.

Advanced Packaging Roadmap

Beyond standard OSAT operations, Kaynes Semicon's Sanand unit is positioning for advanced packaging services including silicon photonics modules, targeted at optical interconnect startups and data center supply chains. LightSpeed Photonics, a Singapore-based near-packaged optical interconnect startup with R&D operations in Hyderabad, has cited Kaynes Semicon as an early packaging partner for its solderable optical transceivers, signaling the plant's ambitions to serve next-generation AI infrastructure applications beyond conventional chip packaging.

Building Domestic Packaging Expertise

Kaynes Technology's semiconductor strategy reflects a broader pattern emerging across India's OSAT sector: domestic electronics manufacturing companies with established supply chain relationships are pivoting into chip packaging as the India Semiconductor Mission creates favorable economics through subsidies, land support, and infrastructure guarantees. Kaynes's established customer base in electronics manufacturing services gives it a structural advantage in cross-selling packaging capacity to existing clients upgrading their designs to chiplet or multi-chip module architectures.

Significance for India's Back-End Ecosystem

With Micron's ATMP plant handling memory chip packaging and CG Semi operating the Renesas-backed OSAT for automotive ICs, the addition of Kaynes Semicon's plant creates a growing cluster of independent, commercially operational packaging capacity in Sanand, establishing the industrial area as India's first de facto semiconductor back-end hub. Policymakers expect this concentration of capability to attract chip designers, IDMs, and equipment suppliers into the same geography over the next three to five years.