Kaynes Technology has signed an agreement with the Indian state of Karnataka in which the state government will invest Rs 3,750 crore ($435.9 million) for two Kaynes subsidiaries to set up a PCB manufacturing plant and a semiconductor assembly and testing (OSAT) facility.

In a BSE stock exchange filing, Kaynes said Kaynes Semicon Private Limited will lead the setup of the OSAT facility and Kaynes Circuits India Private Limited will spearhead the establishment of a PCB manufacturing plant for producing complex multi-layered boards.

The investment agreement is meant to help create 3,200 jobs in Karnakata by harnessing collective expertise, meeting pressing demands, and making Karnataka a hub for cutting-edge semiconductor manufacturing.

The electronics systems and design manufacturer is expecting to cross the Rs 2,000 crore revenue mark with the latest MoU, said Ramesh Kunhikannan, managing director at Kaynes Technology India Ltd.

The investment is expected to further boost 30-50% revenue compound annual growth rate guidance for the next three years, said Chief Executive Officer Rajesh Sharma.

The company plans to start production in both plants in 15 months and expects the benefit to flow in from the second half of FY25 and early FY26.

The investment is expected to take place in three phases. The first phase for the printed circuit board plant would require an investment of Rs 400 crore, which has already been raised.

For the semiconductor facility, the first phase of Rs 1,500 crore will be 70% funded by the central and state governments through subsidies, while the rest will be funded as a combination of equity and debt.

About Kaynes Technology

Kaynes Technology is a leading integrated electronics manufacturer in India with over three decades of experience in providing conceptual design, process engineering, integrated manufacturing, and life cycle support for major players in various segments such as automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, internet of things (IoT), information technology (IT), and more. 

The company has an advanced manufacturing infrastructure that enables it to manufacture products at variable or flexible volumes across all industry verticals. Kaynes operates eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. Additionally, they have service centers out of Cochin and Mumbai, catering to railway, aerospace, defense, and industrial clients.

Click here for more latest news on the PCB and semiconductor industry