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Kaynes Semicon plans to expand beyond OSAT into the broader semiconductor value chain

ICICIdirect Research 28 Jul 2026 DISCLAIMER

News: Kaynes Semicon plans to expand beyond OSAT into the broader semiconductor value chain by evaluating opportunities in wafer fabrication, compound semiconductors, advanced packaging, semiconductor materials and equipment manufacturing under ISM 2.0. The company is in advanced discussions with global technology partners and intends to pursue these projects through JVs, with proposals expected to be submitted once the ISM 2.0 application window opens. It is also evaluating Sanand and Dholera as potential project locations

View: Kaynes has already invested ~₹3300 crore OSAT facility which become operational recently in March 2026. Further this announcement by management reflects Kaynes’ ambition to evolve into a vertically integrated semiconductor player, moving beyond assembly and testing into higher value-added manufacturing. If executed successfully with global technology partners and supported by ISM 2.0 incentives, the company could significantly deepen its presence across India’s semiconductor ecosystem while reducing dependence on imported materials and equipment. However, these initiatives remain at the evaluation stage and are contingent on JV finalisation, government approvals and successful execution. 

Impact: Neutral

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