A diversified global holding company with a strategic focus on AI & Robotics, Fintech, Cybersecurity, Renewable Energy, and Capital Market Consultancy firm, VCI Global Limited to establish India’s first semiconductor wire manufacturing plant in Chennai, in partnership with Kinesis Manufacturing Solutions Sdn Bhd. This initiative aligns perfectly with India’s mission to build a self-sustained semiconductor ecosystem.
The VCI Global-Kinesis plant will focus on producing semiconductor bonding wires, a crucial component in chip manufacturing. The 25,000-square-foot facility will be located in Chennai, with an initial investment of $3.5 million. Operations are set to begin in the third quarter of 2025 with a single production line. By reaching mass production within the same quarter, the plant is projected to generate up to $50 million, resulting in a return on investment (ROI) within 12 months. There are plans to expand to four production lines in the near future, aiming for an annual revenue of approximately $200 million.
India’s semiconductor industry is witnessing rapid expansion, driven by government incentives, foreign investments, and a push for supply chain localization. As the country advances its goal of becoming a global semiconductor powerhouse, the demand for semiconductor materials is surging. According to IMARC, India’s semiconductor materials market is projected to reach $8.1 billion by 2033, growing at a CAGR of 5.22% from 2025 to 2033.
In a strategic move to reduce import dependence, VCI Global and Kinesis are set to establish India’s first semiconductor wire plant. Meanwhile, global players are making significant investments: Lam Research is investing $1.2 billion in Karnataka, Micron Technology is building a $2.75 billion facility in Gujarat, and Crompton Greaves is partnering with Renesas and Star Microelectronics for an $877 million OSAT unit. Tata Electronics and Powerchip Semiconductor are also leading an $11 billion fabrication project in Dholera, cementing India’s semiconductor future.
This joint venture will be majority-owned by VCI Global, with a 51% stake, while Kinesis will hold the remaining 49% stake. The venture will be led by Mr. Loh Beng Siew, a key member of the Kinesis team, who previously established Ultra Clean Technology’s first factory in Malaysia and led AllianceCorp Manufacturing Sdn Bhd to become Malaysia’s first manufacturer of weldments for front-end semiconductor equipment. Backed by the Kinesis team’s exceptional track record in greenfield and brownfield semiconductor manufacturing projects, the leadership is well-positioned to drive the initiative’s success.
“With this strategic venture, VCI Global aims to become a leading supplier in India, providing a critical component for semiconductor packaging and chip manufacturing. Establishing the country’s first semiconductor wire plant secures a high-margin revenue stream and aligns us with the world’s top semiconductor players. As the Indian government drives domestic semiconductor manufacturing and major players expand into the region, we are seizing a rare opportunity to lead a vital niche in the global supply chain,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
