Kaynes Technology had in October last signed a pact with the Telangana government for setting up its OSAT and compound semiconductor manufacturing facility in the State.
Published Date – 12 March 2024, 01:08 PM
File photo of Former IT Minister KT Rama Rao
Hyderabad: Close on the heels of Corning International Corporation relocating its unit from Telangana to Tamil Nadu, another multinational major, Kaynes Semicon, is reportedly shifting its chip assembly unit from Telangana to Gujarat.
One of the leaders in Outsourced Semiconductor Assembly and Test (OSAT) facilities, Kaynes Technology had in October last signed a pact with the Telangana government for setting up its OSAT and compound semiconductor manufacturing facility in the State.
The Rs.2,800 crore investment project was expected to generate employment to 2,000 persons. The proposed facility was to come up in Kongara Kalan, adjacent to the upcoming electronics manufacturing facility of Foxconn.
Kaynes Technology CMD Ramesh Kannan had said, “We are very excited to work with the Government of Telangana for our prestigious OSAT/ATMP plant in Hyderabad. The speed at which Team Telangana worked is unmatched and unparalleled.”
Initially, the company planned to set up the unit in Karnataka but the then Telangana government had convinced the management to set up the unit in the State.
However, in a span of six months, the company is now relocating the unit to Gujarat. The OSAT unit is now being set up with an investment of Rs.5,000 crore (including Rs.1,000 crore working capital) at Sanand, Gujarat, according to reports.
The company was asked to look at a different location since the semiconductor ecosystem in Gujarat was growing with a couple of Assembly, Testing, Marking and Packaging (ATMPs) coming up. The company plans to convert the Hyderabad facility into an Electronics Manufacturing Services (EMS) facility, as per the reports.
The Telangana industries department said there was no official communication from the Kaynes management. “We are trying to speak to them,” a senior official said.
Meanwhile, BRS working president KT Rama Rao hoped the Congress government would reach out to the Kaynes management and ensure that the company remained in Telangana.
“We had put in tenacious efforts to convince Kaynes to move from Karnataka to Telangana. They wanted land allotted right next to Foxconn plant at Kongara Kalan, we got that done in less than 10 days to win them over. Now to see this news that they are moving to Gujarat is truly saddening,” KTR said on X.
We had put in tenacious efforts to convince Kaynes to move from Karnataka to Telangana
They wanted land allotted right next to Foxconn plant at Kongara Kalan. We got that done in less than 10 days to win them over
Now to see this news that they are moving to Gujarat is truly… pic.twitter.com/XRV0pmd24k
— KTR (@KTRBRS) March 12, 2024
In January early this year, Corning International Corporation had relocated its Gorilla glass manufacturing facility to Tamil Nadu. The company had signed a pact with Tamil Nadu to set up its Gorilla glass manufacturing facility at Pillaipakkam, Kanchipuram in Tamil Nadu.
The nearly Rs.1000 crore project was initially planned to be set up in Telangana for providing employment to 840 persons. However, the project is now being set up by Bharat Innovative Glass Technologies Private Limited (BIGTECH), a joint venture between Corning International Corporation and its Indian partner Optiemus Infracon.
