UST, a global company specializing in technological transformation and artificial intelligence, announced a strategic investment in Kaynes Semicon, an Indian semiconductor manufacturer, and the formation of a joint venture to establish an OSAT plant (Outsourced Semiconductor Assembly and Test) in Sanand, Gujarat, with an investment of approximately Rs 3,300 crore. Framed within the “Make in India” initiative, the alliance aims to accelerate local assembly and testing capacity for chips and supply sectors such as electric vehicles (EVs), renewable energy, consumer electronics, and next-generation devices and modules.
The agreement combines UST’s global reach and client base in semiconductors with Kaynes Semicon‘s experience in electronics manufacturing. On the ground, the promise is twofold: attracting new customers for “Made in India” assembly and testing, and maximizing UST’s capabilities in digital engineering, AI-driven process improvements, and real-time data analytics to scale with reliability and controlled costs.
“This partnership will help shape the future of semiconductor manufacturing in India,” emphasized Krishna Sudheendra, CEO of UST. “Make in India is a source of pride for us: we will leverage India’s market strengths to build a strong foundation that positions the country as a key player in the global industry.”
“Alongside UST, Kaynes Semicon will speed up the development, manufacturing, and assembly of advanced components in India to meet global demand,” added Gilroy Mathew, COO of UST.
“This collaboration combines world-class manufacturing and digital engineering to deliver advanced OSAT solutions and foster a self-sufficient semiconductor ecosystem in India,” stated Raghu Panicker, CEO of Kaynes Semicon.
“It’s a for Make in India: it will set benchmarks in assembly, testing, and innovation for semiconductors in India and the global market,” pointed out Ramesh Kannan, EVP at Kaynes Technology India Ltd.
What will be built and why it matters
The project envisions a world-class OSAT facility in Sanand. In industry terms, OSAT is the link that takes the chip after wafer manufacturing and turns it into a product: packaging, assembly, electrical testing, and qualification. As packaging and testing become bottlenecks—especially for complex and heterogeneous modules—growing local capacity enables:
- Shorter lead times (less international transit, better customer coordination).
- Reduced hidden costs (logistics, rework).
- Customization of packages and qualification of products for niches (EVs, industrial, renewables) with specific reliability requirements.
- Capturing value domestically (skilled employment, local suppliers, knowledge).
The proposed OSAT will leverage digital processes and real-time analytics—an area where UST promises momentum—to improve yields, detect deviations in quality early, and avoid cost overruns during ramp-up.
“Make in India”: from rhetoric to production lines
India has been building towards becoming a semiconductor hub for years. While progress has been made in electronics and embedded systems, OSAT capabilities remain nascent. The UST–Kaynes plan will position Sanand—already an emerging industrial enclave—on the map for assembly and testing with a multibillion-dollar investment combining capital, know-how, and supply chain.
The strategy isn’t solely manufacturing-focused. UST brings a portfolio of international clients and designer relationships (fabless) that can channel volumes into India if quality and reliability are assured. Kaynes Semicon provides manufacturing expertise, R&D, testing, and benefits from its parent company, Kaynes Technology India Ltd. (BSE: 543664, NSE: KAYNES), publicly traded.
Benefits for each sector: EVs, renewables, and consumer electronics
- Electric Vehicles (EVs): power modules, battery management, sensors, and MCUs require robust assembly, environmental tests, and cycle testing; having a local OSAT streamlines validation and ramp-up for OEMs.
- Renewable Energy: inverters and controllers demand high reliability and long lifespan; an industrial-rated OSAT minimizes field risks.
- Consumer Electronics / IoT: fast product turnover, volumes, and costs; scalable packaging and automated testing enhance competitiveness.
Completing the value chain in India—at least on the backend—increases resilience (less exposure to external disruptions) and speed to market for local manufacturers.
A “natural” division of roles
- UST: global presence, semiconductor clients, digital engineering, AI for processes, and real-time analytics.
- Kaynes Semicon: manufacturing and testing in India, sector experience, ecosystem of suppliers, and local talent.
This arrangement enables “selling India” to new clients—due to cost, quality, and timelines—and boosts the learning curve for a world-class OSAT that must compete with established players in ASEAN and East Asia.
Management signals
The tone from leadership reinforces the scalability story:
- UST talks about driving the next era of electronics with AI and data at its core, vital for reliability and total cost.
- Kaynes emphasizes self-sufficiency and platforms to set benchmarks not just for India but for the global market.
Pending details to learn
As with any initial announcement, operational specifics that will define success are still to be revealed:
- Construction schedule and ramp-up phases.
- Package mix (QFN, BGA, SiP, advanced packaging in the medium term) and nominal capacity.
- Certifications (automotive, industrial) and testing coverage (reliability, burn-in, ATE).
- Talent policy: hiring and training of technicians and test/packaging engineers.
- Mechanisms for technology transfer and intellectual property in the joint venture.
Success will be measured not just by establishing the plant but also by maintained performance, reject rates, traceability, and compliance during ramp-up.
Advancing India’s hub ambitions
This joint venture adds another piece to India’s semiconductor strategy: beyond attracting front-end fabs, the country is beginning to consolidate the backend—a massive business in employment and value. Sanand is positioning itself as a key OSAT node in the western part of the country, aligned with Make in India and the global appetite for alternative capacity.
If the plant achieves scale and quality, UST and Kaynes will have demonstrated a model: international capital + digital engineering combined with local manufacturing adhering to global standards. Additionally, if they succeed in attracting anchor clients in EVs, renewables, and consumer electronics, the OSAT will not only mitigate bottlenecks but also cement a resilient, deeper supply chain in India.
Frequently Asked Questions
What is an OSAT plant, and what will UST and Kaynes Semicon’s joint venture in Sanand do?
An OSAT (Outsourced Semiconductor Assembly and Test) facility handles packaging, assembly, and electrical testing of chips manufactured on wafers. The planned Sanand (Gujarat) plant will focus on assembling and testing components for EVs, renewables, and consumer electronics, utilizing AI and real-time analytics to enhance performance and cost efficiency.
What is the investment amount, and how does “Make in India” fit?
The announced investment is around Rs 3,300 crore. The project aligns with “Make in India”, aiming to localize critical parts of the semiconductor supply chain, create skilled jobs, and increase the value of products destined for global markets.
What do UST and Kaynes Semicon bring to the table?
UST offers global presence, semiconductor clients, digital engineering, AI-driven process improvements, and data analytics. Kaynes Semicon provides manufacturing capacity and testing in India, sector expertise, and an ecosystem of local suppliers. Together, they aim to attract new clients for assembly and testing in India under international standards.
Who is Kaynes Semicon, and how is it related to Kaynes Technology India Ltd.?
Kaynes Semicon is a 100% subsidiary of Kaynes Technology India Ltd. (BSE: 543664, NSE: KAYNES), a manufacturing and IoT solutions company founded in 2008. The joint venture leverages its experience along with the investment and capabilities of UST to scale a world-class OSAT in Sanand.
via: ust