Artificial Intelligence and technology transformation solutions company UST has announced it will be investing an “unknown sum” in Indian semiconductor manufacturer Kaynes Semicon.
The two companies plan on setting up a ₹3,300-crore or $400 million Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. OSAT is relatively new in India, and a UST spokesperson has said its successful development requires Kaynes’ experience, as well as UST’s strength in R&D, and testing. This plant has been founded on the “Make in India” growth strategy, and this tie-up comes at a time when the Indian semiconductor industry is moving toward its long-term goals of self-reliance and next-generation technology leadership.
“This ambitious partnership between UST and Kaynes Semicon will help shape the future of semiconductor manufacturing in India. We are proud to participate in the ‘Make in India’ initiative. Together, our two great companies will harness the strengths of the Indian market and build a formidable foundation for the country to become a key player in the global semiconductor industry,” said Krishna Surendra, CEO of UST.
Kaynes CEO Raghu Panicker said, “Our partnership with UST brings together world-class manufacturing and digital engineering expertise. This enables Kaynes Semicon to deliver advanced OSAT solutions while strengthening India’s self-reliant semiconductor ecosystem.”
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According to Businessline, UST’s worldwide presence and semiconductor client base makes it a valuable partner for Kaynes, creating opportunities for new customers to leverage the benefits of Indian assembly and testing. UST’s digital engineering, AI-driven process improvements, and real-time data analysis, essential for scale, reliability, and avoiding hidden costs, all benefit the partnership.
Gilroy Mathew, Chief Operating Officer of UST said that the two companies will “collaborate to meet rising global demand by accelerating the development, manufacturing, and assembly of advanced semiconductor components in India.” Ramesh Kannan, Promoter and Executive Vice-Chairman, Kaynes Technology India, added that collaboration with UST is a proud milestone for the “Make in India” mission.
UST isn’t the only company investing in India. Earlier this year, Indian state Andhra Pradesh closed a deal with Google and leading Indian Information and Communications Technology (ICT) service provider Sify. These agreements include $7.9 billion in investment and contributing 1.55 gigawatts (GW) to the state’s data processing capacity. Google will be investing $6 billion in a 1 GW data center, which sources claim would be built in the port city of Vishakapatanam — $2 billion of this has been earmarked for developing renewable energy sources to power the center.