Introduction

Kaynes Technology fab news has been all over Indian business headlines this year. The company already switched on a chip packaging plant in Gujarat, and it has bigger plans on the table. This article walks through what has actually launched, what is still on paper, and when the next milestones are expected. No guesswork here, only what Kaynes and the government have confirmed so far.

What Kaynes Technology Fab Actually Is Right Now

Here is the part people often get mixed up. Kaynes has not built a traditional wafer fabrication plant, the kind that grows silicon wafers from scratch. What it has built is an OSAT facility, short for outsourced semiconductor assembly and test. This plant assembles, tests, marks, and packages chips rather than manufacturing raw silicon.

The unit sits in Sanand, Gujarat. Prime Minister Narendra Modi inaugurated it on March 31, 2026. It runs as India’s second operational chip manufacturing unit under the India Semiconductor Mission, following a Micron facility that started production in the same industrial belt in late February.

So the OSAT plant is live. The wafer-level fab is a separate, later ambition, which we get to below.

The parent company, Kaynes Technology India Limited, is not new to manufacturing. It was founded in 1988 and is based in Mysore, and it works across electronics design and manufacturing for sectors like automotive, aerospace, defence, medical, and railways. The company listed on the stock exchanges in November 2022. Its consolidated net profit reached ₹50.77 crore in the June 2024 quarter, up from ₹24.64 crore a year earlier, while revenue from operations climbed 69.59 percent year on year to ₹503.97 crore in that same quarter. Kaynes Semicon, the entity building the chip plant, employs around 150 people according to company data on file with Pitchbook.

Investment, Capacity, and First Products

The Sanand facility carries a price tag of roughly ₹3,300 crore, close to $394 million. It spans around 18.6 hectares and is designed to churn out about 6 million chips a day at full scale.

The plant’s first product line is Intelligent Power Modules, used in electric vehicles, industrial equipment, and power electronics. A large share of that output has already been booked by overseas buyers, including firms based in the United States.

Some quick numbers to keep in mind:

• Investment: about ₹3,300 crore (roughly $394 million)
• Footprint: approximately 18.6 hectares
• Target capacity: around 6 million chips per day
• First product: Intelligent Power Modules

The Government Push Behind the Plant

The Union Cabinet cleared the semiconductor unit proposal back in September 2024, part of the broader Programme for Development of Semiconductors and Display Manufacturing Ecosystem. That programme was notified on December 21, 2021, with a total outlay of ₹76,000 crore, and Kaynes was the fifth semiconductor unit approved under it, following Micron, Tata, and CG Power projects in Gujarat and another Tata project in Assam.

That original programme is now being followed by a second phase, referred to as ISM 2.0. The finance ministry has approved close to ₹1.20 lakh crore for this next round, and it was set to go before the Union Cabinet for final sign-off around mid-April 2026. Kaynes has said the government has encouraged it to explore new segments, including gallium nitride manufacturing, under this second phase.

Global Partners Backing Kaynes Semicon

A domestic chip plant rarely runs on domestic supply chains alone, and Kaynes is no exception. In March 2026, Mitsui and Co. signed a strategic partnership agreement with Kaynes Semicon and AOI Electronics, described as the largest Japanese OSAT company. Under this deal, Mitsui secured exclusive rights to handle raw material procurement from Japanese-affiliated and other overseas suppliers, along with an option to acquire shares in Kaynes down the road.

Kaynes has also named Globetronics of Malaysia as a partner for its packaging operations. Between government subsidy support, estimated at around 70 percent under the India Semiconductor Mission, and this network of international suppliers, the company is positioning the OSAT unit as more than a standalone plant. It is meant to plug directly into a global supply chain.

The Kaynes Technology Fab Roadmap: Compound Fab and GaN Plans

This is where the future-facing part of the Kaynes Technology fab story lives. In an October 2025 interview, Kaynes Semicon CEO Raghu Panicker laid out plans well beyond the OSAT plant. He described a strategy to set up a fab or compound fab, paired with a design lab, within the next three years from that point.

Alongside that, the company said it would invest close to $150 million in newer packaging technology, covering silicon photonics along with 2.5D and 3D integrated circuits, within a year of that announcement. GPU development was floated as a two-year ambition, and an IPO was mentioned as a possibility within three years.

By April 2026, the plan had narrowed somewhat. Panicker told Moneycontrol that Kaynes was now looking specifically at a gallium nitride, or GaN, fab for power applications, calling it a mid-end fab rather than a leading-edge logic facility. He also mentioned interest in micro-LED technology and a coming joint venture with a partner in Southeast Asia. None of these carry a confirmed launch date yet. They sit at the stage of active planning and government discussion rather than construction.

Production Timeline: What Happens and When

Putting the confirmed dates together gives a clearer picture of where things stand.

• September 2024: Union Cabinet approves the OSAT unit proposal.
• December 2025: Mid-volume production begins for TO and IPM packages, according to Kaynes Semicon’s own published timeline.
• March 2026: Mitsui and AOI Electronics sign a supply chain partnership with Kaynes.
• March 31, 2026: PM Modi formally inaugurates the Sanand OSAT plant.
• September 2026 (planned): Start of QFN, DFN, and BGA package production, per the company’s own roadmap.
• Beyond 2026: Compound fab, GaN fab, design lab, and GPU work remain in the planning and government-approval stage, with the company aiming to launch more than 10 packaging technologies by 2030.

Where This Fits in India’s Wider Chip Push

Kaynes is not building India’s chip industry alone. Its Sanand OSAT plant went live just weeks after a Micron facility in the same region began official production. Nearby, Tata Electronics is building India’s first wafer fabrication plant in Dholera, working with Taiwan’s Powerchip Semiconductor Manufacturing Corp. A separate joint venture involving Foxconn has also added to the momentum in this cluster.

None of these projects run in isolation. Together, they form the backbone of what officials have started calling India’s semiconductor ecosystem, spanning wafer fabrication, chip assembly, testing, and packaging under one policy umbrella. Kaynes’ role, at least for now, sits firmly on the assembly and packaging side, with its own fab ambitions still waiting in line behind ISM 2.0 approval.

Key Takeaways

• Current status: The Sanand OSAT plant is operational, inaugurated on March 31, 2026.
• Not a wafer fab yet: The live facility handles assembly, testing, and packaging, not raw silicon fabrication.
• Investment size: About ₹3,300 crore has gone into the OSAT unit alone.
• Future fab plans: A compound fab and a GaN fab are under active discussion, tied to the upcoming ISM 2.0 programme.
• No fixed launch date: As of mid-2026, the compound and GaN fab projects have no confirmed construction start or launch date.
• Global backing: Mitsui, AOI Electronics, and Globetronics all play a role in the supply chain and technology side.

Frequently Asked Questions

Has Kaynes Technology already launched a semiconductor fab?
Kaynes has launched an OSAT assembly and packaging plant in Sanand, not a traditional wafer fabrication facility.

When did the Kaynes Sanand plant open?
Prime Minister Narendra Modi inaugurated the plant on March 31, 2026.

What is the projected launch date for the Kaynes compound or GaN fab?
No confirmed launch date exists yet, since the compound fab and GaN fab remain in the planning stage tied to ISM 2.0 approval.

How much has Kaynes invested in its semiconductor plant so far?
The Sanand OSAT unit represents an investment of about ₹3,300 crore, close to $394 million.

Who are Kaynes Semicon’s main international partners?
Mitsui and Co. and AOI Electronics from Japan, along with Globetronics from Malaysia, are named partners in Kaynes Semicon’s supply chain and technology plans.

Is Kaynes Technology’s chip plant connected to other semiconductor projects in India?
Yes, it operates alongside nearby projects from Micron and Tata Electronics as part of the wider India Semiconductor Mission cluster in Gujarat.

Conclusion

The Kaynes Technology fab story is really two stories in one. The OSAT plant in Sanand is real, running, and already shipping Intelligent Power Modules to customers abroad. The compound fab and GaN fab, on the other hand, remain future plans without a locked launch date, waiting on government approval under ISM 2.0 and further capital commitments. Anyone tracking this space should watch for the Union Cabinet’s decision on ISM 2.0 and any construction updates from Kaynes Semicon through the rest of 2026.