Semiconductor assembly and test companies in India are seeing interest from customers looking to diversify operations beyond China and Taiwan.
Kaynes Technology is seeking more semiconductor assembly and test business as customers diversify their supply chains beyond China and Taiwan. The company is involved in semiconductor packaging and related manufacturing activities.
At SEMICON 2026, Mohd Zamri Yaacob, Product Engineering Lead, UST Global / Kaynes, said the company is seeing interest from customers seeking additional assembly and test partners in India.
“Customers are looking for additional assembly and test partners in India as they reduce their dependence on China and Taiwan,” Yaacob said.
Rising costs in Taiwan and efforts to diversify beyond China could create opportunities for Indian companies providing outsourced semiconductor assembly and test (OSAT) services. The company currently works with customers that supply wafers containing their own intellectual property (IP), while it handles assembly and final testing before shipping the finished devices back.
“India can compete for semiconductor assembly and test business by building local manufacturing capabilities and supply chains,” Yaacob said.
However, India still relies on imports of several tools, materials, and components needed for semiconductor manufacturing. These supplies are sourced from countries including Malaysia, Singapore, Taiwan, Thailand, and the Philippines. The company said some equipment and materials are difficult to import directly from China.
“China has a large semiconductor manufacturing support ecosystem and high production volumes, so India cannot replicate that supply chain immediately,” Yaacob said.
The company expects its dependence on overseas suppliers to reduce as India’s semiconductor ecosystem develops. It is also building capabilities in post-silicon validation, substrate design, hardware design, and research and development. The company said bringing these activities in-house could reduce costs and support a local supply chain.
Kaynes Technology expects demand for local semiconductor assembly and test to increase as more electronics and component manufacturing moves into India. It is also focusing on integrated power modules (IPMs), which are used in products such as refrigerators, air conditioners, and televisions. The company sees local production of these devices as another opportunity as India’s electronics manufacturing base expands.
