With ambitious plans and contracts from Micron and other global companies, UHP Technologies is set to inaugurate its semiconductor equipment plant in Bengaluru, with an investment plan of ₹2.5 billion ahead.
UHP Technologies, a Bengaluru-based firm and a part of KAS Group, is set to launch a new 20,000-square-foot semiconductor equipment manufacturing plant near the Kempegowda International Airport next week.
Following the delivery of its first order, its parent company plans to invest ₹2.5 billion over the next six to twelve months.
UHP Technologies, which specialises in ultra-high purity (UHP) gas and chemical delivery systems, has secured a contract with Micron Semiconductor in Gujarat, according to a statement from the KAS Group.
Furthermore, the company also announced significant investments. Its subsidiary, KASFAB Tools, has invested ₹200 million in its Doddaballapur facility. The company also intends to establish two more plants in the region.
Manjunath Jyothinagara, Managing Director of KASFAB Tools, revealed in an interview with the Economic Times that their equipment is used for wafer processing into chips. The company is already working with a US-based firm on a $2.3 million contract and aims to deliver 53 pieces of equipment over the next year.
Jyothinagara also stated that the first batch will be ready for shipment between mid-May and June, and the company is prepared to scale production to 500 units annually should the client expand their needs.
KASFAB Tools is also in discussions with US-based Applied Materials and Japan’s Tokyo Electron to expand its customer base.
The contract manufacturing market for semiconductor equipment is valued at $25 billion globally, an area where India has minimal presence. Jyothinagara sees massive growth potential, estimating that KASFAB Tools could generate ₹500 million in revenue in its first year, with future revenues potentially reaching half a billion dollars within three to five years.
