Bengaluru, NFAPost: Fuelling the growth of Karnataka’s technology landscape, Kaynes Technology has entered into a Memorandum of Understanding (MoU) with the Karnataka government’s Electronics, IT, and BT Department to invest Rs. 3,750 Crore in Mysuru.
According to the terms of the agreement, Kaynes Semicon Private Limited will take the lead in establishing a Semiconductor Assembly & Testing (OSAT) facility.
In the initial phase, Kaynes Circuits India Private Limited will spearhead the establishment of a Printed Circuit Board (PCB) manufacturing plant, specializing in complex multi-layered boards.
Expressing happiness over the investment, Karnataka IT/BT Minister Priyank Kharge said Kaynes Technology signs up with the state government to elevate its electronics manufacturing.
“This collaborative MoU to drive innovation for the ESDM Semicon ecosystem in Mysuru will go a long way in helping create ecosystems across Karnataka. Investments beyond Bengaluru is a strong focus by CM Siddaramaiah,” said Karnataka IT/BT Minister Priyank Kharge.
The Bombay stock exchange (BSE) Kaynes Technology has eight manufacturing facilities located in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
To support its growth strategy across India, the firm’s decision to sign the new MoU will help it to set up an additional manufacturing facility at Chamarajnagar and undertake significant expansion at their current facility at Mysore and near their existing facility at Manesar.
The substantial investment of Kaynes Technology will generate 3,200 job opportunities. The MoU leverages the collective expertise of the region, positioning Karnataka as a leader in OSAT and PCB manufacturing.
This partnership signifies a substantial investment of INR 3,750 Crores, an impressive sum that promises not only financial growth but also the creation of 3,200 job opportunities.
What is OSAT?
OSAT stands for Outsourced Semiconductor Assembly and Test. It refers to a segment of the semiconductor industry that specializes in the assembly, packaging, and testing of integrated circuits (ICs) and other semiconductor devices.
OSAT companies play a critical role in the semiconductor supply chain, as many semiconductor manufacturers choose to outsource these assembly and testing processes rather than performing them in-house. This allows semiconductor companies to focus on their core expertise, which is designing and fabricating the semiconductor chips themselves.
The signing of this MoU was graced by esteemed dignitaries, including the Hon’ble Chief Minister of Karnataka, Sri. Siddaramiah, and the Hon’ble Minister for IT/BT and Rural Development & Panchayat Raj, Mr. Priyank Kharge. Also present were Ms. Gunjan Krishna (IAS), Commissioner for Industrial Development and Director, Department of Industries & Commerce, Government of Karnataka, and Mr. Sanjeev Gupta, CEO of KDEM.
