In a significant boost to Telangana’s electronics sector, Kaynes Technology India Ltd., a prominent player in the electronics contract manufacturing services domain, has unveiled plans to establish a cutting-edge semiconductor plant in the state. The company has formalized this endeavor by signing a Memorandum of Understanding (MoU) with the Telangana government, marking a substantial investment of Rs 2,800 crore.
The proposed facility, to be located in Kongara Kalan near Foxconn’s upcoming electronics manufacturing unit, will function as an Outsourced Semiconductor Assembly and Testing (OSAT) and Compound Semiconductor manufacturing unit. This development aligns with India’s ambitions in semiconductor manufacturing, which is currently met by only 0.2% of the nation’s demand.
This venture is anticipated to generate over 2,000 direct jobs, making a significant contribution to the local employment landscape and the overall economy of Telangana. The announcement came after a productive meeting between ITE&C and Industries Minister, K T Rama Rao, and Kaynes Managing Director Ramesh Kunhikannan and Chairperson Savitha Ramesh.
Expressing his enthusiasm about the collaboration with the Telangana government, Ramesh Kunhikannan, Managing Director of Kaynes Technology, praised the efficiency and dedication of Team Telangana. He emphasized the crucial role of semiconductor manufacturing in India’s growth trajectory and expressed hope that the establishment of outsourced semiconductor assembly and testing facilities could propel India into a league comparable to Taiwan, Malaysia, and China.
This announcement follows Kaynes Technology’s earlier agreement with the Karnataka government for a substantial investment of Rs 3,750 crore. This investment aimed to establish a semiconductor assembly and testing facility along with a printed circuit board manufacturing plant through the company’s step-down subsidiaries, underlining the company’s commitment to advancing India’s semiconductor capabilities.
Following the news, Kaynes Technology Ltd. witnessed a significant surge in its shares, rising nearly 16% to reach a record high of Rs 2,954.20 on the Bombay Stock Exchange (BSE). This development reflects the market’s positive reception of the company’s strategic investments in India’s burgeoning semiconductor industry.
