Kaynes Hyderabad facility would cater to industrial, automotive, medical electronics, aerospace, and telecommunications sectors, among others.

However, it appears that the opposition BRS in Telangana is not pleased with Kaynes Tech’s decision to move its OSAT plant to Gujarat.

“Congratulations to Gujarat. This unit of Kaynes was announced to be setup in Telangana in October 2023. We had put in tenacious efforts to convince Kaynes to move from Karnataka to Telangana. They wanted land allotted right next to the Foxconn plant at Kongara Kalan, close to Hyderabad Airport. We got that done in less than 10 days to win them over. Now to see this news that they are moving to Gujarat is truly saddening for us who worked hard for this. This was an important investment of over 3,500 Crore in semiconductor industry which is now a huge loss to Telangana state,” said BRS working president and former IT and industries minister, K T Rama Rao.

The Union Cabinet chaired by Prime Minister Narendra Modi on Monday approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat.

The proposed unit will be setup with an investment of Rs 3,300 crore. The capacity of this unit will be 60 lakh chips per day.

The chips produced in this unit will cater to a wide variety of applications, which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

Kaynes CEO Raghu Panicker met with A Revanth Reddy in August and reiterated his company’s commitment to set up a plant at Kongara Kalan. He invited him to the inauguration on August 23. On August 23, Telangana assembly speaker Gaddam Prasad Kumar, IT minister Duddilla Shridhar Babu, and local MLA Malreddy Ranga Reddy attended the inauguration ceremony.

After signing an MoU with the Telangana government in October last year, Kaynes Technology undertook a ground-breaking ceremony in Kongara Kalan and proposed to invest Rs 2,850 crore.

It is learnt that Kaynes Telangana unit is equipped with the latest manufacturing technologies, including high-precision electronic assembly, 3D optical and artificial intelligence-enabled state-of-the-art inspection systems, and lead-free/RoHS-compliant processes.

Industry sources said as Gujarat has a developed ecosystem with other major chip projects coming up in Sanand and Dholera, Kaynes might have weighed in there to set up the most advanced OSAT unit.