UST, a California-based technology firm, and Kaynes Semicon, a subsidiary of Kaynes Technology India Ltd, have announced a joint investment of ₹3,330 crore to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The facility will support India’s ambition to expand its footprint in the global semiconductor supply chain.
Purpose of the Facility
The new unit will specialize in semiconductor assembly and testing, catering to sectors such as electronics, electric vehicles, renewable energy, and consumer technology. The collaboration aims to strengthen operational reliability, scale production, and enhance cost efficiency.
Role of UST
UST will leverage its global semiconductor expertise, providing digital engineering solutions, AI-based process systems, and real-time data analytics to support the facility’s operations. This is expected to improve efficiency, monitor costs, and optimize production processes.
About Kaynes Semicon
Incorporated in 2008, Kaynes Semicon specializes in semiconductor packaging and related services. Through this venture, it will expand its operational capacity and integrate advanced technologies in collaboration with UST.
Shareholding and Conversion Structure
- Kaynes Semicon will issue 27,778 compulsorily convertible preference shares to UST, representing up to 10% of post-conversion share capital.
- 5% of the share capital will convert immediately upon closing the Securities Subscription and Shareholders’ Agreement (SSSA).
- The remaining 5% will convert based on revenue-related milestones mutually agreed by both parties.
Summary
UST and Kaynes Semicon are investing ₹3,330 crore to establish an OSAT semiconductor facility in Sanand, Gujarat, targeting sectors like electronics, EVs, and renewable energy. UST will provide digital and AI-based engineering support, while Kaynes expands its packaging and testing capabilities. The venture includes a 10% equity stake for UST through a milestone-linked conversion structure, marking a significant step for India’s participation in the global semiconductor supply chain.
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