According to a Business Standard report (as republished by Communications Today), Kaynes Semicon will deliver a prototype of a chip to its very first paying customer, Alpha & Omega Semiconductor (AOS), who will test it to ensure it works as required before full production gets approved. This means the prototype will go through an approximately three-month qualification process that involves both AOS and its end user checking whether it meets all technical requirements. Kaynes is the first among the five companies approved under the Indian Semiconductor Mission to produce and send a chip prototype.
Kaynes has readied a pilot facility in Sanand, Gujarat, covering 1,000 square metres and has plans to start commercial production by January-March 2026. With an investment of $200–220 million, initial expectations estimate a production of 1.5 million chips per day. AOS has signed a five-year offtake agreement with Kaynes and will use over 60% of the initial production, clearly exhibiting a strong commitment.
Kaynes is in talks with companies including Qualcomm, Broadcom, ROHM, STMicroelectronics, Infineon, and Intel about providing OSAT services. The company also has plans for a second phase of expansion with an additional $220 million investment for manufacturing more complex chips. They are also in talks with four international semiconductor companies (from the U.S., Europe, and Taiwan) to sell equity stakes in return for a reserved portion of production. The company, in addition to everything else going on, has partnerships and acquisitions in progress, which include collaborations with global technology providers and a joint deal with L&T to take over Fujitsu's power module business.
