India’s Chip Leap: UST Backs ₹3,330 Cr JV with Kaynes Semicon for Advanced Semiconductor Facility

The new OSAT joint venture in Telangana will power India’s Atmanirbhar tech vision with UST’s design expertise and Kaynes’ hardware leadership

In a strategic move that underscores India’s growing semiconductor ambitions, global technology company UST and Kaynes Semicon, a subsidiary of Kaynes Technology India Limited, have announced a ₹3,330 crore joint venture to establish a state-of-the-art Outsourced Semiconductor Assembly and Testing (OSAT) facility in Telangana.
This partnership marks a critical step towards realising India’s self-reliance goals in advanced electronics and AI hardware infrastructure.

The project, which received final approval from the India Semiconductor Mission (ISM), will focus on flip chip and ISIP (Integrated System in Package) technologies, essential for next-generation AI and computing devices. With this venture, UST and Kaynes Semicon aim to cater to global demand for high-performance chip packaging while bolstering India’s presence in the value chain beyond design and into advanced manufacturing.

“This partnership reflects our long-term commitment to building deep-tech capabilities in India and enabling innovation at the silicon level,” said Sunil Balakrishnan, Chief Values Officer & Global Head for Development Center Operations, UST.
Kaynes Semicon will hold 70% equity in the new venture, with UST owning 30%, bringing its deep semiconductor and embedded systems experience to the partnership. The JV also benefits from an anchor client agreement, helping de-risk the business model and ensuring long-term demand alignment.

The new facility, expected to be located in Telangana, adds momentum to India’s push to become a credible player in the global semiconductor ecosystem. OSAT services are a key enabler in the silicon-to-systems stack, offering packaging, assembly, and final testing for semiconductors before deployment in everything from smartphones to electric vehicles.

“With the government’s continued support and strategic partnerships like this, India is poised to emerge as a hub for next-gen semiconductor manufacturing,” said Ramesh Kannan, Managing Director, Kaynes Technology India Ltd.
This collaboration not only aligns with the ‘Make in India’ and ‘Digital India’ missions but also supports downstream growth in areas like AI compute, IoT, automotive electronics, and smart infrastructure.

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