Kaynes Semicon, a subsidiary of Kaynes Technology India, is set to begin revenue generation from July 2025 following the acquisition of Fujitsu General’s power module business. The company is also nearing the operational launch of its OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat, India. It has begun upskilling employees through overseas training to prepare for full-scale production in FY26.
Kaynes Semicon, a wholly owned subsidiary of Kaynes Technology India based in Mysuru, Karnataka, is poised to begin generating revenue from July 2025 through its recent acquisition of Fujitsu General’s power module business. The acquisition was executed in partnership with L&T Semiconductor Technologies (LTSCT) and marks a pivotal moment in India’s semiconductor manufacturing journey.
Initial production will continue in Japan before operations shift to the company’s Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat, which is expected to begin full-scale production by the fourth quarter of FY26. “From July, we’ll start seeing revenue inflows since all of Fujitsu’s customers will be handed over to us,” said Raghu Panicker, CEO of Kaynes Semicon.
The acquisition, valued at ₹118.34 crore (approximately USD 14.2 million), includes the transfer of Fujitsu’s power module business to L&T’s fabless chip unit, with Kaynes handling production. Regulatory approval from Japan’s Foreign Exchange and Foreign Trade Act is expected by June 23.
The Gujarat plant’s pilot line and clean room are already complete, with equipment installation scheduled between late June and July. The first IPM5 samples for key customer Alpha and Omega Semiconductor (AOS) will be delivered in August, followed by IPM7 in December. The facility is projected to manufacture up to 670 million units annually, with current production capabilities at 0.6 million units per month.
Kaynes is also investing heavily in talent development. Engineering teams have already been dispatched to Penang, Malaysia, and will soon train in China and Japan. “We are quietly building capability. This is a long-term play, and we are investing in deep skill development,” Panicker added.
The OSAT facility, approved under the ₹76,000 crore India Semiconductor Mission in September 2024, is part of a ₹3,300 crore investment plan. Phase one will use 60% of this capital for the pilot line, main plant building, and infrastructure. Phase two will focus on scaling capacity.
Kaynes Semicon has partnered with Globetronics from Malaysia and AOI from Japan for technology support. The OSAT unit will offer end-to-end backend solutions, including advanced testing, failure analysis, and reliability infrastructure, making it a one-stop platform for semiconductor manufacturing.
Recruitment is also underway for its R&D line focused on package-based emulation, with a goal of onboarding ten semiconductor customers by December 2025.
“This is more than a facility,” said Panicker. “We are laying the foundation for India’s semiconductor future.”
