Kaynes Technology India Ltd. has inked a pact with the Telangana government to set up a semiconductor plant in the state for Rs 2,800 crore.
“The company entered into an MoU with Government of Telangana for setting up of Outsourced Semiconductor Assembly and Testing (OSAT) and Compound Semiconductor manufacturing facility in the State,” it said in its exchange filing.
The proposed facility will be set up in Kongara Kalan, adjacent to the upcoming electronics manufacturing facility of Foxconn, the statement said.
The proposed investment is expected to generate direct employment for over 2,000 people, according to the filing.
ITE&C and Industries Minister, K T Rama Rao, met Kaynes Managing Director Ramesh Kunhikannan and Chairperson Savitha Ramesh to announce the setting up of the facility in the state.
“We are very excited to work with the Government of Telangana for our prestigious OSAT/ATMP plant in Hyderabad. The speed at which team Telangana worked is unmatched and unparalleled,” Kunhikannan said.
Minister Rama Rao said that this is a proud moment for Telangana, as they now join the league of coveted global destinations that host the semiconductor industry.
"Recent investments from global leaders such as Foxconn and Corning have reinforced Telangana as the preferred destination for electronics manufacturing," he shared on X.
Delighted to welcome @Kaynestech for setting up of OSAT & Compound Semiconductor manufacturing facility in Telangana, with an investment of 2800 Cr generating 2000 jobs. 😊
October 6, 2023
Proud moment for Telangana as we now join the league of coveted global destinations that host… pic.twitter.com/2Z8e4DJcJ7The electronics contract manufacturer earlier signed a MoU with the Karnataka government for Rs 3,750 crore to set up a semiconductor assembly and testing facility and a printed circuit board manufacturing plant through the company's step-down subsidiaries.
Semiconductor manufacturing is inevitable for India's growth, with only 0.2% of India's demand being manufactured domestically, Kunhikannan told BQ Prime.
“India is being looked at as an active and innovative player today,” and with outsourced semiconductor assembly and testing facilities, India may grow in tandem with Taiwan, Malaysia, and China, Kunhikannan said.
Shares of Kaynes Technology Ltd. closed 2.34% higher at Rs 2,549.70 apiece before the announcement. This compares to a 0.55% advance in the benchmark NSE Nifty 50.
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