Kaynes Technology is set to open a new semiconductor manufacturing facility in Telangana

Kaynes Technology, a prominent integrated electronics manufacturing company offering end-to-end and IoT solutions, has made a significant announcement regarding the establishment of a new semiconductor manufacturing facility in Telangana.

In a landmark moment for India’s Semiconductor Mission, Telangana is set to host a Semiconductor OSAT and Compound Semiconductor facility by Kaynes Technology. According to the details, the company entered into an MoU with the Government of Telangana (Information Technology, Electronics, and Communications Department, or ITE&C) to set up an Outsourced Semiconductor Assembly and Testing (OSAT) and Compound Semiconductor manufacturing facility in the state of Telangana.

Furthermore, the company’s proposed facility will require an investment of Rs 2,800 Crore and is expected to create direct employment opportunities for over 2,000 individuals.

Kaynes Technology India Limited, an established company with three decades of experience, operates as a homegrown leader in the Electronics Contract Manufacturing Services sector with a global presence. Now, it is venturing into OSAT/ATMP services through its subsidiary, Kaynes Semicon. Over the initial three years, Kaynes Semicon plans to provide comprehensive support to global customers in areas such as QFN, SOT, TO, BGA, and FC BGA packages, primarily for power devices. Additionally, the company is in the process of establishing a cutting-edge R&D centre for package research, in collaboration with IIT Bombay.

Semiconductors serve as the foundation for modern computing devices and are playing an increasingly pivotal role in propelling the global economy forward as the world moves towards greater adoption of digital technologies. Telangana has now secured a coveted place among the global destinations hosting the semiconductor ecosystem.

The stock commenced trading at Rs 2,550.30 per share on the BSE, showing minimal change compared to Friday’s closing price of Rs 2,549.25 per share. It reached intraday highs and lows of Rs 2,630 and Rs 2,545, respectively. As of the time of writing this article, it is trading at approximately Rs 2,630 per share on the BSE.

From the company’s perspective, this represents a significant strategic move, marked by the establishment of a new facility and a substantial investment. Investors should keep this stock on their radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.