Latest news with #OSAT
Time of India
3 days ago
- Business
- Time of India
Kaynes' Sanand OSAT set to go live by December
Academy Empower your mind, elevate your skills Mysuru-based electronics manufacturing services (EMS) and design firm Kaynes Technology 's Sanand-based outsourced semiconductor assembly and test ( OSAT ) plant is expected to be operational by December, said Kaynes Semicon chief executive Raghu Panicker.'We will provide the first sample by September 15. The clean room has been set up and now the equipment and raw materials are coming in,' he told Technology received an approval from the Union cabinet in September last year for setting up an OSAT facility in Sanand, Gujarat, with a Rs 3,307 crore investment. The capacity of this unit will be 6.3 million chips per reported on August 4 that Kaynes Circuits India may invest more than Rs 4,000 crore in setting up an advanced electronic component manufacturing facility in Thoothukudi, Tamil Nadu. The plant would produce 74-layer printed circuit board (PCB), high-density interconnect PCB , flexible PCB, high-performance laminates, camera module assembly and wire harness June, Kaynes Semicon and L&T Semiconductor Technologies (LTSCT) acquired Japanese Fujitsu General's power modules business for Rs 118.34 will transfer the business to Larsen & Toubro 's fabless chip company and related production facilities to Kaynes Semicon, which will in turn manufacture these products for LTSCT, the companies had May, Kaynes Semicon, a 100% subsidiary of Kaynes Technology India, opened its first overseas chip design centre in Muscat, its headquarters Mysuru , the company is providing EMS for smart meters and servers at a facility spread over 17 acres of land, and is proving services to multinational conglomerate Honeywell Kaynes Semicon's multilayer high-density interconnect PCB facility in Chennai, being built with an investment of $150-250 million will go live by January next year, Panicker said, adding, 'We've already started the construction. By the end of the year the first product should be ready.'Apart from the bare board PCB plant in Chennai Kaynes Technology and its subsidiaries have 12 PCB assembly plants in India and three plants outside India, in the US, Canada and Austria. 'The Oakland plant is going well with a lot of defence business coming in. The products from that plant are for local consumption. It's for the US,' Panicker per the company's full-year revenue guidance of Rs 4,500 crore, it is expecting Rs 4,250 crore from its core EMS, electronics system design and manufacturing operations, Rs 100 crore from its OSAT facility and Rs 175 crore from the acquisition of August Electronics in Canada."We've acquired a company in Calgary, Canada, called August Electronics where we do PCB assembly. We've also acquired a company called Sensonic in Scharding, Austria, where also we do PCB assembly. We have also acquired Digicom Electronics in Oakland, California. These acquisitions were made two years, one and a half years and six months back,' Panicker also hinted at future acquisitions, particularly in North America and Europe, to deepen the company's design capabilities and enter new high-margin regions are being targeted not just for geographic diversification but also to strengthen the company's design and original design manufacturing capabilities, particularly in high-value verticals such as industrial automation, railways and advanced Semicon is evaluating opportunities to acquire companies that will help its embedded design and prototyping its OSAT business, the company is building long-term global relationships by offering minority equity stakes to key technology partners and clients. US Tech India Pvt. Ltd. has been allotted a 10% stake and AOS (Advanced Optoelectronic Solutions) has been allotted 8.25% stake in the OSAT stakes are designed to ensure business continuity. These partners are also supplying critical bottleneck model enables Kaynes Semicon to become the preferred manufacturing partner for their future high-tech product lines, including advanced packaging, silicon photonics and artificial intelligence (AI)-driven hardware.
Economic Times
3 days ago
- Business
- Economic Times
Kaynes' Sanand OSAT set to go live by December
Mysuru-based electronics manufacturing services (EMS) and design firm Kaynes Technology's Sanand-based outsourced semiconductor assembly and test (OSAT) plant is expected to be operational by December, said Kaynes Semicon chief executive Raghu Panicker.'We will provide the first sample by September 15. The clean room has been set up and now the equipment and raw materials are coming in,' he told ET. Kaynes Technology received an approval from the Union cabinet in September last year for setting up an OSAT facility in Sanand, Gujarat, with a Rs 3,307 crore investment. The capacity of this unit will be 6.3 million chips per day. ET reported on August 4 that Kaynes Circuits India may invest more than Rs 4,000 crore in setting up an advanced electronic component manufacturing facility in Thoothukudi, Tamil Nadu. The plant would produce 74-layer printed circuit board (PCB), high-density interconnect PCB, flexible PCB, high-performance laminates, camera module assembly and wire harness assembly. In June, Kaynes Semicon and L&T Semiconductor Technologies (LTSCT) acquired 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 Semicon, which will in turn manufacture these products for LTSCT, the companies had said. In May, Kaynes Semicon, a 100% subsidiary of Kaynes Technology India, opened its first overseas chip design centre in Muscat, Oman. At its headquarters Mysuru, the company is providing EMS for smart meters and servers at a facility spread over 17 acres of land, and is proving services to multinational conglomerate Honeywell. Kaynes Semicon's multilayer high-density interconnect PCB facility in Chennai, being built with an investment of $150-250 million will go live by January next year, Panicker said, adding, 'We've already started the construction. By the end of the year the first product should be ready.'Apart from the bare board PCB plant in Chennai Kaynes Technology and its subsidiaries have 12 PCB assembly plants in India and three plants outside India, in the US, Canada and Austria. 'The Oakland plant is going well with a lot of defence business coming in. The products from that plant are for local consumption. It's for the US,' Panicker per the company's full-year revenue guidance of Rs 4,500 crore, it is expecting Rs 4,250 crore from its core EMS, electronics system design and manufacturing operations, Rs 100 crore from its OSAT facility and Rs 175 crore from the acquisition of August Electronics in Canada."We've acquired a company in Calgary, Canada, called August Electronics where we do PCB assembly. We've also acquired a company called Sensonic in Scharding, Austria, where also we do PCB assembly. We have also acquired Digicom Electronics in Oakland, California. These acquisitions were made two years, one and a half years and six months back,' Panicker also hinted at future acquisitions, particularly in North America and Europe, to deepen the company's design capabilities and enter new high-margin regions are being targeted not just for geographic diversification but also to strengthen the company's design and original design manufacturing capabilities, particularly in high-value verticals such as industrial automation, railways and advanced Semicon is evaluating opportunities to acquire companies that will help its embedded design and prototyping expertise. Strategic equity stakes in OSAT In its OSAT business, the company is building long-term global relationships by offering minority equity stakes to key technology partners and clients. US Tech India Pvt. Ltd. has been allotted a 10% stake and AOS (Advanced Optoelectronic Solutions) has been allotted 8.25% stake in the OSAT stakes are designed to ensure business continuity. These partners are also supplying critical bottleneck model enables Kaynes Semicon to become the preferred manufacturing partner for their future high-tech product lines, including advanced packaging, silicon photonics and artificial intelligence (AI)-driven hardware. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. As RBI retains GDP forecast, 4 factors that will test the strength of Indian economy Is Shadowfax closing in on its closest rival? Can Coforge's ambition to lead the IT Industry become a reality? Berlin to Bharuch: The Borosil journey after the China hit in Europe Stock Radar: Syngene International showing signs of momentum after falling 26% from highs; what should investors do? Two Trades for Today: A life insurance major for a 4.85% upmove, a mid-cap diesel engine maker for almost 7% rise Multibagger or IBC - Part 18: This auto ancillary started with wheels. It now also powers wind & war Auto stocks: Yes, headwinds in the short term, but will structural change become tailwinds and prove analysts wrong?
Time of India
6 days ago
- Business
- Time of India
Semiconductor mission: India steps up chip drive; revolution gathers pace with major investments, talent push
AI image India is undergoing a major transformation in its semiconductor journey, rapidly building capabilities to become a critical player in the global chip value chain. The push is backed by significant policy support, large-scale investments, and a growing pool of skilled engineers, as per news agency ANI. Semiconductors, essential to devices ranging from smartphones and televisions to satellites, form the backbone of modern digital technologies. With the global chip market projected to cross $1 trillion by 2030, India is working to shift from being an import-dependent economy to becoming a trusted manufacturing and design partner globally, according to PIB. At the centre of this transformation is the India Semiconductor Mission (ISM), launched in December 2021 with a budget of Rs 76,000 crore. It is aimed at supporting manufacturing, assembly, testing, packaging, and design of semiconductor chips, while also encouraging R&D and industry-academia collaboration. According to industry data, India's semiconductor market was valued at around $38 billion in 2023 and is expected to reach $100–110 billion by 2030. This anticipated growth is being powered by multiple government schemes. The Semiconductor Fabs Scheme, for instance, offers up to 50% financial support for fabrication units. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Is What First-Class Living Really Looks Like Explore Undo There are also specific schemes for display fabs, packaging (ATMP/OSAT), and startups under the Design Linked Incentive (DLI) scheme. So far, six major projects have received approval under these schemes. These include large-scale investments from Tata Group, Micron Technology, CG Power, Kaynes Semicon, and an HCL-Foxconn venture. Together, these plants will produce millions of chips and wafers each month to meet both domestic and global demand. India is also making progress in chip design. New 3-nanometre chip design centres in Noida and Bengaluru mark a leap in innovation. Under the DLI scheme, 22 startups have already received Rs 234 crore in support, focusing on chips for mobile networks, smart electronics, surveillance systems, and automotive use. Skill development is another priority. Over 85,000 engineers are being trained in advanced manufacturing and chip design, with more than 44,000 already certified under NIELIT Calicut's SMART Lab programme. Partnerships with institutions such as Purdue University and global firms like IBM and Lam Research are helping align local talent with global standards. India's growing semiconductor ambitions are showcased through the annual SEMICON India summit, organised in partnership with SEMI. The 2025 edition, scheduled for September 2–4 at Yashobhoomi in New Delhi, will feature 300+ exhibitors from 18 countries, including dedicated country pavilions. The Covid-19 pandemic and geopolitical tensions such as the Ukraine war have highlighted the risks of relying on a few nations for global chip supplies. In this context, India's local manufacturing drive is a strategic move aimed at national security and supply chain resilience. With a vast pool of engineers and a strong MSME base supporting electronics manufacturing, India is positioning itself to contribute to the full semiconductor lifecycle—from raw material processing to advanced chip design. As approved projects go live and fresh investments are announced, India's transition from chip dependence to chip leadership appears well underway. 'From dependence to dominance, the chip revolution is real and it's happening right here, right now in Bharat', PIB noted. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
News18
31-07-2025
- Business
- News18
India Approves 23 Chip-Design Projects To Enhance Local Semiconductor Production
Last Updated: India's government approved 23 chip-design projects under the Design Linked Incentive scheme to boost local semiconductor production, providing financial aid for development. As part of boosting India's indigenous semiconductor production from designing to manufacturing, the India government has sanctioned 23 chip-design projects under the Design Linked Incentive (DLI) scheme, as informed by the Union Minister of Electronics and Information Technology Jitin Prasada in the Lok Sabha. According to DD News report, these projects mostly spearheaded by domestic companies, startups and MSMEs will receive financial assistance to develop chip solutions for areas such as surveillance cameras, energy meters, microprocessor IPs, and networking applications. The DLI scheme is a component of the Rs 76,000 crore 'Semicon India Programme', which aims to establish a comprehensive semiconductor and display manufacturing ecosystem in the country. Since its launch in December 2021, the scheme has seen the participation of 278 academic institutions and 72 startups that now have access to advanced EDA tools, according to DD News report. India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India's long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem. 1) Scheme for setting up of Semiconductor Fabs in India provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country. Following fiscal support has been approved under the scheme: 28nm or Lower – Up to 50% of the Project Cost Above 28 nm to 45nm – Up to 40% of the Project Cost Above 45 nm to 65nm – Up to 30% of the Project Cost 2) Scheme for setting up of Display Fabs in India provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country. The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab. 3) Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India: The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India. 4) Design Linked Incentive (DLI) Scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The scheme provides 'Product Design Linked Incentive" of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and 'Deployment Linked Incentive" of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application. In addition to the above schemes, Government has also approved modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : semiconductor view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Star
28-07-2025
- Business
- The Star
‘Muted, uneven' recovery for semicon industry
PETALING JAYA: Local semiconductor players continue to navigate a period of heightened uncertainty as a convergence of tariff and trade uncertainty, supply chain dynamics and foreign-exchange (forex) volatility continue to cloud the outlook for the sector. Fortress Capital Asset Management Sdn Bhd chief executive officer Thomas Yong said the industry is likely to experience a period of 'muted and uneven recovery' in the next two to three quarters. In particular, factory utilisation rates in segments tied to consumer electronics may remain muted, and earnings for the second quarter of 2025 (2Q25) is expected to be 'relatively stagnant on a sequential basis'. 'The market would remain volatile, reacting sharply to news related to US-China trade policies, tariff deadlines, and macroeconomic data prints. This period will test investor patience,' he told StarBiz. Yong added that there is a bifurcation in demand in the chip industry, where the artificial intelligence (AI) and data centre markets are 'booming' while the recovery in consumer electronics like smartphones and personal computers remains 'tepid and fragile'. He opined that in such a market Malaysian semiconductor companies should adopt a dual-pronged approach to their capital allocation. 'Players must simultaneously modernise their core, established businesses while selectively and strategically invest in the future growth engines outlined by the National Semiconductor Strategy. 'Take our local outsourced semiconductor assembly and test (OSAT) industry as an example. 'The actionable strategy for local OSAT players is to prioritise capital expenditure (capex) towards acquiring and mastering the capabilities for advanced chip packaging, that is, 2.5D and 3D packaging, fan-out wafer-level packaging, and system-in-package integration,' Yong said. In such a way, companies can position themselves to capture high-margin, high-volume business directly from the world's leading fabless AI chip designers. Fortress Capital's Yong said local players are facing 'significant' margin compression. Notably, a combination of lower-than-optimal production run rate, rising operational costs, including higher electricity tariffs and increased labour expenses driven by a fierce talent war, is squeezing profitability. 'This is compounded by currency effects, as a strengthening ringgit against the US dollar can temper the earnings of export-oriented firms,' he said. Nonetheless, UOB Kay Hian wealth advisor's head of investment research Mohd Sedek Jantan said the uncertainty surrounding US trade policy still stands out as the foremost risk to growth for the domestic semiconductor space. Last week, blue chip semiconductor company Vitrox Corp Bhd was downgraded by analysts following the company's second-quarter earnings announcement. 'Sell' calls for the automated test equipment (ATE) company now outweigh the 'buy' and 'hold' ratings. Hong Leong Investment Bank (HLIB) Research downgraded its call for ViTrox to a 'sell' from a 'hold' with an unchanged target price of RM2.65, derived based on price-to-earnings (PE) multiple of 34 times of the financial year 2026 (FY26) earnings per share. The research house said forex volatility, higher reciprocal tariffs from the United States, and component shortages could weigh on ViTrox's near-term margins. HLIB Research said since ViTrox's 1Q25 results, its share price has surged by 40% amid a strong rebound in sentiment for the technology sector, and that the company's current valuation at 48.5 times FY26 PE 'appears stretched', considering 'lingering demand risks from US tariff uncertainties'. Mohd Sedek is of the view that the risks in Malaysia's semiconductor sector are not yet fully priced in. While certain market and policy concerns have been reflected in valuations, several emerging and persistent risks – particularly related to trade policy, regulatory developments, and supply chain dynamics – remain underappreciated by investors, he noted. Mohd Sedek said operationally, while margin pressures from higher labour levies and escalating selling, general and administrative costs persist – particularly for OSAT and ATE players – valuations have adjusted. 'OSATs are currently trading around one standard deviation below their five-year average, with ATEs closer to two standard deviations below. 'This suggests that some risks have been recognised by the market, yet not all fully accounted for – especially considering the complex global and policy environment,' he said. Mohd Sedek cautioned that potential US legislative changes, such as the proposed One Big Beautiful Bill Act, could introduce further compliance burdens for semiconductor firms, particularly around supply chain transparency and technology transfer. He added that supply chain risks, particularly stemming from the US Section 232 investigations into semiconductors and critical minerals, also warrant attention. 'Possible tariffs or trade restrictions could disrupt Malaysia's access to vital inputs like rare earths, which are heavily sourced from China, as well as critical minerals supplied via regional partners such as Indonesia and Vietnam,' Mohd Sedek said. On top of country-specific reciprocal tariffs, the Trump administration has signalled since April that a special tariff rate will be applied to sectors like semiconductors. The United States is currently weighing on the tariff rate for the sector, pending the outcome of its ongoing Section 232 'national security' investigation. Competitive pressures also remain a structural challenge for the local chip sector. Mohd Sedek says Malaysia's 13% share of the global chip packaging market faces growing competition from Vietnam, India, and China – markets benefitting from aggressive expansion strategies and, in some cases, state support. This is also echoed by Yong that intensifying regional competition 'cannot be ignored'. 'Malaysia is not the sole beneficiary of global supply chain diversification. 'Vietnam, in particular, is aggressively courting foreign direct investment with attractive tax incentives and a national chip strategy of its own. Thailand also remains a formidable competitor, especially in the automotive semiconductor space. Complacency is a luxury we cannot afford,' Yong said. Mohd Sedek shared its base case projects a sector earnings contraction of about 2.7% in 2025, underscoring a challenging environment marked by slowing demand, regulatory hurdles, and macroeconomic uncertainties. Despite these near term challenges, experts say the long-term upside potential of the sector is 'compelling'. Yong said recovery is expected to broaden and accelerate into 2026 as inventories normalise and new investment cycles begin. He opined that the 'most significant tailwind' is the structural, multi-decade shift to de-risk global technology supply chains away from a single point of geographic concentration. He stated that Malaysia's 50-year track record, its well-established ecosystem, skilled workforce, and valued geopolitical neutrality make it a prime destination for 'China+1' and 'friend-shoring' strategies by American, European, and even Chinese firms seeking a stable, high-capability manufacturing base. 'This is not a cyclical trend that will fade; it is a fundamental realignment of global capital flows that will benefit Malaysia for years to come,' he said. Yong also believes that the country can capture the AI 'spillover' effect in that while Malaysia may not be designing the next-generation graphic processing units from scratch, the immense complexity of AI systems however, requires massive investment in what happens after the silicon wafer is fabricated: advanced packaging, highly sophisticated testing, and the manufacturing of the automated equipment that performs these critical tasks. 'Arguably, Malaysia already has the foundation necessary to capture such spillover,' he said. Mohd Sedek also echoed Yong's sentiment, noting that the structural drivers of digitalisation, 5G deployment, AI adoption, and data centre expansion are expected to reinforce Putrajaya's role within the global semiconductor supply chain. 'Infrastructure-led growth and regional mega-projects create meaningful opportunities for firms directly engaged in these emerging ecosystems,' he said. According to Mohd Sedek, technology remains a core investment theme for 2H25, and investors can focus on companies with strong exposure to high-growth segments like AI, 5G, and data centre components. He highlighted the importance of prioritising firms with sound forex hedging strategies and diversified revenue streams. 'To mitigate cyclicality risks, investors could pair semiconductor exposure with defensive sectors, while also have a long-term strategic view through anchor investments on long-term technology megatrends – recognising the sector's critical role in global digitalisation and supply chain realignment,' Mohd Sedek said.
