Kaynes Semicon Ties Up With Mitsui, AOI to Boost Chip Ecosystem

• Kaynes Semicon partners AOI for advanced packaging tech
• Ties with Mitsui secures critical semiconductor materials
• Boosts India's OSAT ops; targets global value chain

Kaynes​‍​‌‍​‍‌​‍​‌‍​‍‌ Semicon Private Limited, a wholly-owned subsidiary of Kaynes Technology India Ltd, has established two significant strategic partnerships with the Japanese companies AOI Electronics Co Ltd and Mitsui & Co Ltd to support its upcoming semiconductor manufacturing operations in India. These partnerships aim to strengthen India's technology transfer, supply chain, and overall semiconductor ecosystem as the country moves towards self-reliant chip production under programs like Make in India and Atmanirbhar Bharat.

The collaboration with AOI Electronics allows Kaynes Semicon to acquire state-of-the-art back-end semiconductor knowledge that includes advanced packaging, panel-level packaging, and wafer-level redistribution layer (RDL) technologies. This relationship empowers the company to provide complete turnkey back-end solutions to worldwide clients in the sectors of automotive, industrial, consumer electronics, and communications, thus making India a competitive player in high semiconductor assembly and testing (OSAT) of the value chain.

Also Read: Apple Eyes iPhone Chip Assembly in India to Boost Local Manufacturing

On the other hand, the collaboration with Mitsui & Co - a trading and investment global conglomerate with a diversified portfolio assures dependable sources of the most necessary raw materials such as lead frames, molding compounds, die-attach materials, specialty gases, and semiconductor grade chemicals. It tackles the issue of international supply chain vulnerabilities and at the same time, ensures that there will be no production stoppages and that disruption risks will be minimized.

Raghu Panicker, CEO of Kaynes Semicon, called the events "a leap forward in building high-value semiconductor capabilities in India" and he also said that AOI's backend expertise "dramatically improves the ability to serve the global value chain locally." These partnerships power the government-approved OSAT project of Kaynes Semicon in Sanand, Gujarat, with a targeted operational launch in the first half of 2027 and a daily capacity of millions of chips.

In essence, the deals signal the international community's increasing trust in India's semiconductor goals and facilitate the local production of technology, creating high-tech jobs in the country and lessening import dependence while still catering to the rising domestic and export ​‍​‌‍​‍‌​‍​‌‍​‍‌demand.