California: Mysuru-based Kaynes Technology is strategically expanding its footprint in the United States (US), marked by the acquisition of Digicom Electronics, an electronics manufacturing services (EMS) company situated in Oakland, California.

According to Deepak Chadha, Chief Executive of Business Operations at Kaynes Technology India Ltd., this move is instrumental in broadening their presence in the US market. Chadha explained, “This acquisition enables us to undertake small-scale builds and prototyping in the US. When it comes to large-scale manufacturing, we can leverage our capabilities in India. Additionally, the last-mile box build can be executed in the US, just before shipping to our customers in the region.”

Furthermore, Kaynes has acquired a 13.2 percent stake in Mixx Technologies Inc, based in California, with the goal of positioning Kaynes as a comprehensive “silicon to systems” manufacturer specialising in Artificial Intelligence (AI) and high-performance computing infrastructure.

Mixx Technologies, a deep-tech semiconductor startup established in May last year, focuses on introducing three-dimensional scalability to generative AI and high-performance computing systems. By integrating photonic circuits and advanced packaging, Mixx aims to advance the semiconductor ecosystem in a relatively new area, using photons for data transmission instead of electrons.

Vivek Raghuraman, Chief Executive at Mixx Technologies, highlighted the increasing interest in this technology among various companies due to its benefits in power efficiency, performance and density, especially in the context of AI applications.

In October, Kaynes initiated the construction of an Outsourced Semiconductor, Assembly and Test (OSAT) facility in Telangana, with an investment of Rs. 2,850 crore. The company, which debuted on the NSE and the BSE in November 2022, secured Rs. 1,400 crore in funding in 2023 from prominent investors, including Nomura, Goldman Sachs, PSP Investments, Norges Bank, Carmignac, BNP Paribas and Acacia.

Chadha outlined the company’s plans to utilise the funds for various phases, focusing on the establishment of semiconductor and Printed Circuit Board (PCB) lines. Kaynes currently operates manufacturing infrastructure in Mysuru, Bengaluru, Chennai, Pune, Manesar and Parwanoo, with service centres in Mumbai and Kochi. They are also set to open a new PCB assembly plant in Pune, anticipating revenue contributions from it in the upcoming year.

Additionally, Kaynes recently acquired 17 acres of land in Chamarajanagar, Karnataka, to establish an EMS plant, which is now operational. With a current workforce of 2,500 employees in India, the company intends to increase its workforce by an additional 700 to 800 employees.

While PCB assembly constitutes 64 percent of the company’s revenue, 10 percent is derived from Original Design Manufacturing (ODM) and 30 percent originates from box build services, offering comprehensive turnkey solutions to their customers.