Kaynes Semicon's OSAT Facility in Gujarat to Start Mass Production in January 2026

Kaynes Semicon is preparing to start commercial operations at its OSAT facility in Sanand, Gujarat in January 2026. Pilot operations began in April, and multi-month validation is currently underway. The facility expects to begin commercial-scale deliveries to anchor customer Alpha Omega by October, followed by full-scale production in January. The company has committed Rs 400 crore so far and plans to raise the remaining Rs 3,307 crore through a combination of government funding and equity.

Kaynes Semicon, a leading semiconductor manufacturer, is on track to commence commercial operations at its outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat, by January 2026. The company began pilot operations in April and has been conducting multi-month validation trials since then.

The facility, which has secured a significant contract with anchor customer Alpha Omega Semiconductor, expects to start commercial-scale deliveries by October 2025. Full-scale production is scheduled to commence in January 2026, following the validation phase. The OSAT facility is expected to utilize about 60% of its first-phase capacity to supply Alpha Omega, with additional customers lined up for future deliveries.

Kaynes Semicon has committed Rs 400 crore to the project so far and plans to raise the remaining Rs 3,307 crore through a combination of government funding and equity. The company has already secured Rs 1,653.5 crore from the central government and Rs 661.4 crore from the Gujarat government, with the company's share being Rs 992.1 crore. The funding will be used for debt repayment, capital expenditure, and corporate purposes.

In addition to its semiconductor operations, Kaynes Technology recently launched edge AI-powered camera modules for commercial vehicles, featuring real-time driver fatigue detection and 360-degree vision systems. These modules aim to enhance accident prevention and worker safety.

Kaynes Semicon is adopting a partnership- and equity-led approach for global expansion, retaining local management in overseas acquisitions and avoiding disruptive integrations. The company has raised substantial funds through public offerings, including Rs 626 crore from its initial public offering (IPO) in November 2022 and Rs 1,374 crore through a public sale of shares to institutional investors in December 2023.

References:
[1] https://economictimes.indiatimes.com/tech/technology/kaynes-semicon-eyes-january-2026-for-mass-production-at-sanand-osat/articleshow/123705253.cms