Kaynes Semicon to Kickstart Revenues from Fujitsu Deal by July 2025
Kaynes Semicon, a subsidiary of Kaynes Technology India, is set to begin generating revenue starting July 2025 through its recently announced acquisition of Fujitsu General’s power module business. The strategic deal was undertaken in collaboration with L&T Semiconductor Technologies (LTSCT). According to CEO Raghu Panicker, operations will initially commence in Japan before transitioning to Kaynes’ upcoming Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat, which is scheduled to become fully operational by the fourth quarter of FY26.
The acquisition, valued at ₹118.34 crore, involves the transfer of Fujitsu’s power module business to L&T’s fabless unit, with Kaynes overseeing production. Regulatory approval under Japan’s Foreign Exchange and Foreign Trade Act is awaited, with the deal expected to close by June 23. Panicker told Moneycontrol that from July onwards, revenues will begin to flow as Fujitsu’s customers transition to Kaynes. Meanwhile, the Gujarat OSAT plant is progressing well, with the pilot line and clean room already in place. Equipment installation is in the final stages and sample deliveries are planned for August, followed by full-scale production in early 2026.
Kaynes, in partnership with Alpha and Omega Semiconductor (AOS), will manufacture essential power electronics such as IGBTs, MOSFETs, and intelligent power modules (IPMs). The annual production target is set at 670 million units. The Fujitsu acquisition provides an immediate monthly production capacity of 0.6 million units, serving automotive and industrial-grade segments. Two additional clients are expected to be announced in July.
Backed by a ₹3,300 crore investment under the India Semiconductor Mission, Kaynes is deploying 60% of the capital in the first phase to establish the pilot line, plant infrastructure, and support systems. Technology partners Globetronics from Malaysia and AOI from Japan are contributing to the development. The facility will offer end-to-end backend semiconductor solutions including advanced testing, reliability checks, and failure analysis.
To meet upcoming demands, Kaynes is scaling up its engineering team threefold by December 2025. Engineers have already been sent to Penang and will soon undergo specialized training in China and Japan. “We are building deep capabilities for the long term,” Panicker said, noting the company’s ambition to onboard 10 semiconductor clients by the end of 2025.
Source: Moneycontrol
