Electronics maker targets threefold expansion in semiconductor packaging capacity as domestic and export demand accelerates.
Indian electronics manufacturer Kaynes Technology is evaluating a potential $1 billion investment in outsourced semiconductor assembly and testing (OSAT) facilities under the second phase of the India Semiconductor Mission (ISM 2.0).
The proposed commitment—highlighted in a JPMorgan research note following the SEMICON India 2026 conference—represents roughly three times the size of Kaynes’ original allocation under ISM 1.0. The move coincides with the firm’s first semiconductor facility transitioning into commercial production, alongside reported plans for a $1 billion plant in Gujarat focused on advanced packaging and micro-LED technologies.
JPMorgan noted that India’s semiconductor ecosystem is rapidly progressing beyond foundational capacity building toward volume scaling. Production across operational OSAT and assembly, testing, marking, and packaging (ATMP) units is seeing strong demand, driven by both domestic clients and expanding international export opportunities.
Local producers—including Kaynes, CG Power, Micron, CDIL, and Suchi Semicon—are actively shipping chips globally, with Indian-manufactured components demonstrating cost and quality parity with established overseas suppliers.
For the 2027 financial year, Kaynes has issued revenue guidance of $30 million to $36 million (250 crore to 300 crore rupees) for its OSAT division, with approximately 100 crore rupees in orders already booked. JPMorgan added that the wider India Semiconductor Mission is advancing ahead of schedule, fulfilling its core ISM 1.0 objectives in four years rather than the initial six-year timeline.
