6 hours ago
Kaynes Semicon, L&T arm to acquire Fujitsu General's power modules business
Kaynes Semicon
and L&T Semiconductor Technologies (LTSCT) are acquiring Japanese
Fujitsu General
's
power modules business
for Rs 118.34 crore.
Fujitsu will transfer the business to Larsen & Toubro's fabless chip company and related production facilities to Kaynes, which will in turn manufacture these products for LTSCT, the companies said.
The transaction is expected to close on June 23, pending regulatory clearance under Japan's Foreign Exchange and Foreign Trade Act.
'The new
OSAT facility
being setup in Sanand, Gujarat, is launching its operations with a focus on the global power device packaging market,' Raghu Panicker, chief executive of Kaynes Semicon, told ET.
Mysuru-based Kaynes is one of the production contractors for LTSCT. The LTSCT specialises in semiconductor product development, manufacturing, and sales. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country.
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The deal is part of Fujitsu's strategy to streamline operations within its tech solution business and reinforce its overall business foundation.
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Panicker said the deal is supported by two major initiatives: a multi-million-dollar, high-volume service agreement with its customer Alpha and Omega Semiconductor (AOS) and the acquisition of three power packaging lines from Fujitsu Electronics Ltd Japan.
'The partnership with AOS will cover core power devices like IGBTs, power modules and MOSFETs with volumes projected to reach nearly 670 million units annually, while the Fujitsu technology provides immediate capability for high-reliability automotive and industrial-grade power modules, adding a production capacity of approximately 0.6 million units per month,' he said.
These moves position the company as a significant new player in the
power electronics supply chain
, Panicker said.
By combining a foundational, high-volume customer with advanced packaging technology and immediate production capacity, the company is poised to meet the surging global demand for power semiconductors driven by the
electric vehicles
,
renewable energy
, and industrial automation sectors, he said.
This establishes a vital new capability in India's domestic semiconductor ecosystem and addresses the global need for a more resilient and diverse manufacturing footprint for power devices.
L&T has invested more than $300 million to create LTSCT.
Fujitsu General, in a regulatory filing on Monday, announced the divestiture of its power module business operated by its consolidated subsidiary, Fujitsu General Electronics (FGEL).
This transaction is expected to result in the recording of an extraordinary gain of approximately 2 billion yen (about $13.8 million) from the business transfer in the April-June 2025 quarter, it said.
Reasons for the Divestiture
FGEL's tech solutions division is involved in the development, manufacturing, and sale of electronic devices, as well as the manufacturing of information and communication equipment. The divestiture of the power module business is part of a broader portfolio transformation within the electronic device business, aimed at strengthening the Fujitsu General Group's business foundation, it said.
