Kaynes Technology enters Japan's chip assembly market with AOI Electronics and Mitsui

• Kaynes Semicon, an Indian subsidiary of Kaynes Technology, is entering the Japanese semiconductor assembly market.
• The company has formed strategic partnerships with Japan's AOI Electronics for advanced back-end semiconductor technologies and Mitsui & Co. for raw material supply.
• These collaborations aim to bolster technology capabilities and supply-chain resilience for Kaynes Semicon's upcoming operations in India.
• Kaynes Semicon will gain access to technologies like advanced packaging and panel-level packaging through the AOI Electronics partnership.
• Mitsui & Co. will manage the procurement of critical raw materials such as lead frames, molding compounds, and specialty gases.
• Kaynes Semicon plans to commence operations in the second half of 2026, with government approval under the 'Make in India' initiative.

Kaynes Semicon Private Limited, a subsidiary of India's Kaynes Technology India Ltd, is expanding its semiconductor business by entering into strategic partnerships with two Japanese firms: AOI Electronics Co., Ltd. and Mitsui & Co., Ltd. The collaborations are designed to enhance technology capabilities and supply chain resilience as Kaynes Semicon prepares for its semiconductor manufacturing foray in India.

Under the agreement with AOI Electronics, Kaynes Semicon will gain access to advanced back-end semiconductor technologies, including advanced packaging, panel-level packaging, and wafer-level redistribution layer (RDL) processes. AOI Electronics is recognized for its expertise in semiconductor back-end manufacturing, a critical area for sectors like automotive electronics and industrial applications.

Separately, Kaynes Semicon has partnered with Mitsui & Co., a major Japanese trading and investment conglomerate, to secure essential raw materials for semiconductor manufacturing. These materials include lead frames, molding compounds, die-attach materials, specialty gases, and semiconductor-grade chemicals. This partnership aims to mitigate supply chain disruptions and ensure a steady supply of critical inputs.

Mitsui & Co. will support Kaynes Semicon's semiconductor back-end process business by leveraging AOI Electronics' expertise and assisting with the sales of manufactured products. Mitsui has also secured exclusive rights for procuring raw materials from Japanese-affiliated and other international suppliers, facilitating collaboration to support the launch and stable operation of Kaynes' business. The company has also secured the right to acquire Kaynes' shares in the future.

These alliances align with India's 'Make in India' and 'Atmanirbhar Bharat' initiatives, which aim to localize high-value semiconductor manufacturing and reduce reliance on imports. The project has received approval from the Government of India under the 'Make in India' framework. Kaynes Semicon aims to commence operations in the second half of 2026.