UST, a global AI and technology transformation solutions company, has announced a strategic investment in Kaynes Semicon to establish a ₹3,330 crore semiconductor manufacturing facility in Sanand, Gujarat.
The new plant will focus on Outsourced Semiconductor Assembly and Test (OSAT) solutions, aiming to strengthen India’s semiconductor ecosystem and enhance its global competitiveness.
“This ambitious partnership between UST and Kaynes Semicon will help shape the future of semiconductor manufacturing in India. Together, our two great companies will harness the strengths of the Indian market and build a formidable foundation for the country to become a key player in the global semiconductor industry,” said Krishna Sudheendra, Chief Executive Officer of UST.
Raghu Panicker, Chief Executive Officer of Kaynes Semicon, highlighted the synergy between the two firms. “Our partnership with UST brings together world-class manufacturing and digital engineering expertise. This enables Kaynes Semicon to deliver advanced OSAT solutions while strengthening India’s self-reliant semiconductor ecosystem,” he said.
The collaboration aims to leverage both companies’ strengths in manufacturing and technology. UST’s global presence and established semiconductor client base are expected to open new opportunities for Kaynes Semicon, helping Indian assembly and testing services reach a wider international audience. By integrating digital engineering, AI-driven process optimization, and real-time data analysis, the partnership is designed to ensure scalability, reliability, and cost efficiency in semiconductor production.
The facility will also target key sectors such as electric vehicles, consumer electronics, and renewable energy technologies, aligning with India’s broader push for self-reliance in strategic industries. Both companies stressed that the investment represents not only a manufacturing expansion but also a platform for long-term collaboration, innovation, and industry growth.
Semiconductor manufacturing is a complex process that involves multiple stages, including wafer fabrication, photolithography, etching, doping, packaging, and rigorous testing. OSAT facilities, such as the one planned in Sanand, focus on the assembly, packaging, and testing phases, which are critical for ensuring chip reliability and performance. By localizing these processes in India, the partnership is expected to reduce dependence on imports and support domestic demand for advanced electronic components.
The investment also reflects growing interest from global technology firms in India’s semiconductor sector. With increasing demand for chips in electronics, electric vehicles, and renewable energy systems, local manufacturing and testing capabilities are becoming essential to meeting both domestic and international market requirements.
UST and Kaynes Semicon have stated that the facility will incorporate advanced digital solutions and AI-driven monitoring systems to streamline operations and maintain high-quality standards. The collaboration aims to create a resilient supply chain while supporting India’s ambitions to emerge as a global hub for semiconductor production.
The Sanand facility is expected to play a key role in shaping India’s semiconductor landscape, providing both technological expertise and manufacturing capacity that can meet the growing needs of domestic and international clients.
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