Sanand to Silicon Valley: Kaynes Semicon dispatches India's first commercial multi-chip module to California's AOS: Report

The total investment in the OSAT project amounts to Rs 3,307 crore, with contributions from the Centre (Rs 1,653.5 crore), the Gujarat government (Rs 661.4 crore), and Kaynes (Rs 992.1 crore)

India's first commercially packaged multi-chip module (MCM) has been rolled out from Kaynes Semicon's outsourced semiconductor assembly and test (OSAT) facility in Sanand and delivered to California-based Alpha & Omega Semiconductor (AOS), The Economic Times reported. The landmark shipment, completed early Wednesday, comprised around 900 intelligent power modules (IPMs) for the Sunnyvale-headquartered designer and supplier of power semiconductors.

The Sanand OSAT facility has been established under the India Semiconductor Mission (ISM 1.0) with an investment support of Rs 1,653.5 crore from the Centre. Pilot production began in April this year, The Economic Times noted.

An IPM is a semiconductor device that integrates power switching elements such as insulated gate bipolar transistors (IGBTs) along with drive and protection circuits into one compact unit, simplifying motor control and power applications.

"This is a one-of-its-kind module, with 17 dies inside - six IGBTs, two controller ICs, six fast recovery diodes (FRDs), and three diodes - placing it among the most advanced in this domain. German chip company Infineon remains the market leader in this segment," said Raghu Panicker, CEO of Kaynes Semicon, in a statement to The Economic Times.

He added that while most firms focus on single-die packaging, Kaynes has developed a multi-chip module that was assembled, tested, marked, and packaged for AOS at its Sanand facility. "We have the capacity to produce 3,000 pieces per day and will send another shipment next month," Panicker said.

A single-die package combines all components on one silicon die, whereas a multi-die (or "chiplet") package integrates several smaller dies within a single package. This approach allows the use of different technologies and fabrication processes, improving flexibility, performance, and production efficiency.

Neil Shah, partner and technology analyst at Counterpoint Research, told The Economic Times that Kaynes' move signifies a leap straight into complex, high-integration modules rather than starting with basic packaging. These IPMs, he said, are used in critical and high-power applications such as electric vehicles (EVs) and renewable energy systems that demand high reliability and safety.

Shah also observed that successfully producing a compact, high-performance module integrating power semiconductors like IGBTs and MOSFETs with control and protection circuits demonstrates Kaynes' readiness to collaborate with global players such as AOS and Infineon. However, he noted that maintaining consistent yields, quality, and efficiency as production scales will be the key challenge ahead.

As per The Economic Times, the Gujarat facility is designed to reach a full capacity of 6.3 million chips per day. The first commercial shipment to AOS marks the beginning of mass production, expected to ramp up by January 2026. AOS is likely to consume most of the initial output, with production set to reach 1.5 million chips per day by the first quarter of FY2026-27. Under the supply agreement, Kaynes will deliver 10 million chips annually to AOS for five years.

The total investment in the OSAT project amounts to Rs 3,307 crore, with contributions from the Centre (Rs 1,653.5 crore), the Gujarat government (Rs 661.4 crore), and Kaynes (Rs 992.1 crore). So far, the company has invested around Rs 400 crore in the facility, The Economic Times reported.

In September last year, Mysuru-based Kaynes became the fourth company in India to receive government approval to set up an OSAT unit, joining Micron, Tata Semiconductor Assembly and Test, CG Power, HCL-Foxconn, 3D Glass Solutions, ASIP Technologies, and CDIL.

Founded in 2008, Kaynes Technology - the parent company of Kaynes Semicon - is a listed electronics manufacturing services (EMS) firm with expertise in design-led manufacturing, IoT solutions, and integrated electronic systems. The Economic Times said the semiconductor subsidiary forms a central part of the company's strategy to align with the government's semiconductor mission and strengthen India's position in the global chip ecosystem.