Kaynes Semicon, a subsidiary of Kaynes Technology India, is set to start generating revenue from July 2025 through its acquisition of Fujitsu General’s power module business, executed in partnership with L&T Semiconductor Technologies (LTSCT). The company is also on track to operationalise its Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat by the fourth quarter of FY26, a top company official told Moneycontrol.
As part of the acquisition, initial production will continue in Japan before being shifted to the Gujarat OSAT plant. "From July, we’ll start seeing revenue inflows since all of Fujitsu’s customers will be handed over to us," Kaynes Semicon CEO Raghu Panicker told Moneycontrol. "We'll run the line in Japan for some time, and once our plant is ready, we’ll move the equipment here and manufacture locally."
Earlier this month, Kaynes and LTSCT announced the Rs 118.34 crore acquisition of Fujitsu General’s power modules business. Under the agreement, Fujitsu will transfer the business to L&T’s fabless chip unit, while Kaynes will handle production. The deal is expected to close by June 23, subject to regulatory approval under Japan’s Foreign Exchange and Foreign Trade Act.
The Gujarat plant’s pilot line and clean room are already ready, with equipment installation expected to finish between late June and July. The first IPM5 sample will be delivered in early August, followed by another in mid-August and the IPM7 by December for Alpha and Omega Semiconductor (AOS), one of Kaynes’ key customers in the power domain.
“Commercial production from the main facility is expected to begin in Q1 of the next calendar year,” said Panicker, adding that two new customers will be announced in July. Kaynes is partnering with AOS to manufacture critical power components such as IGBTs, MOSFETs, and power modules, with annual volumes projected to reach 670 million units. The Fujitsu acquisition adds an immediate production capability of 0.6 million units per month, catering to high-reliability, automotive- and industrial-grade power modules.
To support the ramp-up, Kaynes is tripling its engineering workforce by December, Panicker added. Teams have already been sent to Penang, Malaysia and will soon be deployed to China and Japan for specialised training. “We are quietly building capability. This is a long-term play, and we are investing in deep skill development,” Panicker said.
The OSAT facility, approved under the Rs 76,000-crore India Semiconductor Mission on September 2, 2024, is part of a Rs 3,300 crore investment plan. 60% of the capital will be deployed in phase one, which includes the pilot line, the main plant building, and support infrastructure. Using these foundational elements, phase two will scale capacity further.
Kaynes Semicon has partnered with two technology partners: Globetronics from Malaysia and AOI from Japan.
The plant will offer end-to-end backend solutions, including advanced testing, failure analysis, and reliability infrastructure. “This will be a one-stop solution. We are setting up ATE, testers, probers, handlers, and full labs for FA and reliability analysis,” Panicker said.
The company has also begun hiring for its R&D line focused on package-based emulation and aims to bring on board 10 semiconductor customers by December 2025. “There is strong traction. We are not just building a facility; we are creating a platform for India’s semiconductor ambitions,” he added.
Kaynes’ OSAT will offer a complete backend solution, including advanced testing infrastructure.
"We will have a quality, reliability, and failure analysis lab under one roof. We have already hired a few people for our R&D line for package-based emulation," he said.
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