Kaynes Technology signs MoU with State Government to set up plant at Kochanahalli near Nanjangud
Bengaluru: In a significant development set to reshape the technological landscape of Karnataka and Mysuru, the Mysuru-based Kaynes Technology has entered into a Memorandum of Understanding (MoU) with the Government, aimed at catalysing innovation.
This collaboration propels Karnataka to the forefront of Outsourced Semiconductor Assembly and Testing (OSAT) and Printed Circuit Board (PCB) manufacturing at Kochanahalli near Nanjangud, backed by a substantial investment of Rs. 3,750 crore. Envisioned as a strategic initiative, this partnership is projected to generate 3,200 employment opportunities through the synergistic pooling of expertise.
CM Siddharamaiah, along with Minister for IT/BT and Rural Development and Panchayat Raj Priyank Kharge, Chief Secretary Vandita Sharma, Commissioner for Industrial Development and Director of the Department of Industries & Commerce, Gunjan Krishna, CEO of Karnataka Digital Economy Mission (KDEM) Sanjeev Gupta and Ramesh Kannan, Managing Director of Kaynes Technology India Limited were present when the MoU was signed in Bengaluru yesterday.
It may be recalled here that the previous BJP Government had entered into an MoU with International Semiconductor Consortium (ISMC) Analog Fab Private Ltd., an Israel-based company. This agreement aimed to establish India’s inaugural mega semiconductor plant on a sprawling 234-acre site in Kochanahalli within the Kadakola Industrial Area, Nanjangud.
The projected investment for this ambitious venture was estimated at Rs. 22,900 crore. However, this endeavour faced challenges due to Intel Corporation’s intentions to acquire Tower Semiconductors, a component of the ISMC. This development led to the project’s inability to come to fruition. Now with Kaynes Technology signing the MoU, a promising change is on the horizon for the semiconductor industry as Kaynes is set to establish the OSAT and PCB manufacturing facility in Kochanahalli, reinvigorating the prospects for semiconductor manufacturing in the region.
Beyond addressing immediate industry imperatives, this collaboration aspires to position Karnataka as a distinguished hub for pioneering semiconductor manufacturing, fostering a self-reliant and dynamic ecosystem.
This initiative underscores a substantial financial commitment that not only promises economic growth but also the creation of employment opportunities. Harnessing the collective expertise of the region, this collaboration propels Karnataka to a leadership position in OSAT and PCB manufacturing.
The MoU underscores Kaynes Technology’s pivotal role as an anchor in the Electronics System Design and Manufacturing (ESDM) semiconductor ecosystem in Mysuru. This MoU is poised to amplify Mysuru’s prominence on the global stage.
Leading this transformative endeavour, Kaynes Semicon Private Ltd will spearhead the establishment of the OSAT facility, while Kaynes Circuits India Private Ltd will take the lead in setting up the PCB manufacturing plant, dedicated to producing intricate multi-layered boards.
OSAT pertains to a segment within the semiconductor industry specialising in the assembly, packaging and testing of integrated circuits (ICs) and other semiconductor devices. OSAT companies play a critical role in the semiconductor supply chain, as many semiconductor manufacturers opt to outsource these assembly and testing processes, allowing them to focus on their core expertise of designing and fabricating semiconductor chips.
A major milestone in evolution of supply chain out of India
Speaking to Star of Mysore on the MoU with the State Government, Col. Sharath Bhat, President, International Business, heading Market and New Initiatives at Kaynes Technology, Mysuru, said that today India is realising the value of building the supply chain of electronic components out of India. “This step of Kaynes Technology to set up an OSAT, that is Outsourced Semiconductor Assembly and Testing as well as Printed Circuit Board Fabrication (PCB) is a major milestone in the evolution of the supply chain out of India,” he said.
“We are very happy and aligned with the ‘Atma Nirbhar’ policy of the Centre where they are giving impetus to the electronics industry to ensure the growth of the local electronic manufacturing sector, saving huge foreign exchange, going forward,” Col. Sharath Bhat said.
Also, this initiative puts Mysuru in the International semiconductor map. “Kaynes Technology being a Mysuru-headquartered company, is trying to come into the global map with Mysuru and its competence being projected globally and it is a great initiative for Mysureans and all of us,” he added.
This post was published on August 25, 2023 7:45 pm