Kaynes Semicon eyes GaN fab in India: Here's why
What's the story
Kaynes Semicon, a semiconductor company under Kaynes Technology, is looking to expand its operations in the high-growth segments of gallium nitride (GaN) and micro LED. The company's CEO Raghu Panicker told Moneycontrol that they are considering a GaN fab for power applications as part of the upcoming India Semiconductor Mission (ISM) 2.0. The move comes even as Kaynes has started production at its OSAT facility and begun shipments.
Expansion plans
GaN fab for power applications
Panicker said, "We have started to look at a GaN fab—gallium nitride. It's a mid-end fab, more for power applications." He added that the government has encouraged them to explore this area under ISM 2.0. The company is also looking into micro-LEDs and plans to announce a joint venture soon with a Southeast Asian partner.
Mission objectives
What is ISM 2.0?
The Indian government's finance ministry has approved ₹1.20 lakh crore for the proposed ISM 2.0, which will be taken up by the Union Cabinet for final approval around mid-April. The second iteration of ISM will focus on strengthening India's semiconductor ecosystem, with an emphasis on research and development (R&D), chip design, and innovation. It shall also prioritize advanced memory packaging focused on high bandwidth memory (HBM) for AI data centers.
Facility details
OSAT facility commences production
Kaynes Semicon's OSAT facility in Sanand, Gujarat, was inaugurated on March 31, marking the start of its commercial production. The ₹3,300 crore plant is India's second operational semiconductor unit under ISM. It has an initial capacity of around three million units a month, expandable to 1.5 billion units annually. With additional units nearing completion, Kaynes is positioning itself as a key domestic player across semiconductor packaging and advanced manufacturing.