₹1,653.5 Crore Investment: Kaynes Semicon to Ship India’s First Multi-Chip Module

Kaynes Semicon’s Sanand OSAT facility, backed by ₹1,653.5 crore from the India Semiconductor Mission, ships India’s first multi-chip module (MCM) to California-based AOS, marking a milestone in advanced semiconductor packaging.

Introduction

India is making waves in the global semiconductor ecosystem. Kaynes Semicon Pvt Ltd has officially shipped India’s first commercially packaged multi-chip module (MCM) to Alpha & Omega Semiconductor (AOS) in California.

This achievement comes from the company’s Sanand OSAT (Outsourced Semiconductor Assembly and Test) facility, established under the India Semiconductor Mission (ISM 1.0) with a ₹1,653.5 crore investment from the government.

This milestone is not just about producing chips; it represents India’s capability in advanced packaging, positioning the nation as a trusted partner for global semiconductor companies.

/techovedas.com/global-semiconductor-industry-to-invest-400-billion-in-300mm-fab-equipment-by-2027

5 Key Highlights

  1. India’s First Multi-Chip Module: A breakthrough for domestic semiconductor packaging.
  2. Advanced OSAT Facility: Sanand plant backed by ₹1,653.5 crore under ISM 1.0.
  3. Complex Engineering Feat: Each IPM integrates 17 dies, including 6 IGBTs, 2 controller ICs, 6 FRDs, and 3 diodes.
  4. Global Partnerships: Shipment to AOS strengthens India’s credibility in international semiconductor supply chains.
  5. Boost for India’s Semiconductor Ecosystem: Critical for EVs, renewable energy, and industrial automation.

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The Strategic Significance of Sanand OSAT

The Sanand OSAT facility represents a strategic move in India’s semiconductor ambitions.

With a ₹1,653.5 crore investment under ISM 1.0, the plant is designed to deliver high-value semiconductor packaging and testing, an area traditionally dominated by countries like Taiwan, South Korea, and Germany.

Raghu Panicker, CEO of Kaynes Semicon, highlighted the significance:

Companies generally focus on single die packaging. We delivered a multi-chip module — a complex product that we assembled, tested for quality, marked, and packaged for AOS.

The facility is currently capable of producing 3,000 units per day, with shipments scheduled regularly, indicating that Kaynes is prepared for continuous high-volume production.

techovedas.com/india-semiconductor-ecosystem-why-it-needs-an-anchor-industry

Understanding Multi-Chip Modules (MCMs)

A multi-chip module (MCM) integrates multiple semiconductor dies into a single package. Unlike a single die package, where all circuits reside on one silicon die, MCMs combine several specialized dies or “chiplets” to improve:

  • Performance
  • Modularity
  • Time-to-market
  • Design flexibility

The IPMs shipped to AOS contain:

  • 6 IGBTs (Insulated Gate Bipolar Transistors)
  • 2 controller ICs
  • 6 fast recovery diodes (FRDs)
  • 3 additional diodes

This complex configuration supports high-efficiency power control, crucial for electric vehicles, industrial automation, and renewable energy systems.

techovedas.com/why-china-is-investing-heavily-in-chiplets

Global Partnerships and Market Impact

Shipping to AOS, a U.S.-headquartered semiconductor supplier, positions Kaynes as a reliable global OSAT partner. It also opens avenues to collaborate with industry leaders like Infineon Technologies, a current market leader in power modules.

Neil Shah, Technology Analyst at Counterpoint Research, commented:

“Kaynes is not taking baby steps with basic packaging but jumping directly into complex, highly integrated modules. Manufacturing at scale for such high-performance modules is a commendable feat.”

Such partnerships not only validate the quality of Indian semiconductor manufacturing but also create pathways for future export-led growth in advanced chip packaging.

/techovedas.com/infineon-unveils-worlds-first-300mm-gan-wafer-technology-for-power-electronics/

Impact on India’s Semiconductor Ecosystem

This milestone strengthens India’s semiconductor ecosystem in several ways:

  1. Filling the OSAT Gap: India has been importing advanced chip packaging solutions. Kaynes now provides a domestic alternative.
  2. Skill and Technology Development: Multi-chip module assembly demands precision in thermal management, wire bonding, and quality testing.
  3. High-Value Applications: IPMs are crucial for EVs, solar inverters, industrial automation, and other high-reliability sectors.
  4. Boosting Investor Confidence: Global partnerships demonstrate India’s capability to meet international standards.
  5. Foundation for Advanced Packaging Expansion: The success paves the way for next-gen technologies like 2.5D/3D ICs.

https://medium.com/@kumari.sushma661/historic-leap-chinas-first-advanced-lithography-machine-signals-new-era-in-ai-chipmaking-c75f8bb5f501

The Road Ahead

With OSAT demand rising due to AI, EVs, and IoT growth, India’s semiconductor strategy is focused on:

  • Scaling production capacities beyond 3,000 units per day
  • Expanding the client portfolio to global semiconductor leaders
  • Investing in R&D for next-generation packaging technologies

The Sanand facility, backed by ₹1,653.5 crore, serves as a blueprint for how India can move from basic assembly to high-value, complex semiconductor integration.

techovedas.com/why-tsmc-wants-osat-partners-to-expand-advanced-packaging

Conclusion

The rollout of India’s first multi-chip module is more than a manufacturing milestone; it’s a strategic leap for India’s semiconductor ecosystem.

With a ₹1,653.5 crore investment under ISM 1.0, Kaynes Semicon has demonstrated the country’s readiness to compete in advanced packaging on a global scale.

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Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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