UST and Kaynes Semicon Announce ₹3,330 Crore OSAT Unit in Gujarat

UST, a technology firm based in California, has announced a joint venture with Kaynes Semicon, a subsidiary of Kaynes Technology India Ltd. The companies will set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The project involves an investment of  ₹3,330 crore.

Purpose of the Facility

The new unit will focus on semiconductor assembly and testing. According to the disclosure, the collaboration is expected to support areas such as electronics, electric vehicles, renewable energy, and consumer technology. The development comes as India continues to push its goal of becoming a larger participant in the global semiconductor supply chain.

Role of UST

UST will provide its existing experience with semiconductor clients along with its global operations. The company will also contribute digital engineering support, AI-based process systems, and real-time data analysis to the joint venture. These tools will be used for improving reliability, scaling up operations, and cost monitoring.

Kaynes Semicon Background

Kaynes Semicon was incorporated in 2008 and works as a wholly-owned subsidiary of Kaynes Technology India Ltd. The company is engaged in semiconductor packaging and related services. Through this venture, it will expand its capacity in collaboration with UST.

Shareholding Details

As part of the agreement, Kaynes Semicon will allot 27,778 compulsorily convertible preference shares to US Technology International (UST). These will account for up to 10% of the share capital after conversion.

Conversion Structure

5% of the share capital is set to be converted on a fully diluted basis at the time of closing the Securities Subscription and Shareholders’ Agreement (SSSA). The conversion of the remaining 5% will depend on revenue-related milestones agreed upon by both parties.

Kaynes Technology Share Price Performance

As of September 30, 2025, 11:22 am, Kaynes Technology share price was trading at ₹7,045, a 0.07% decrease from the previous closing price.

Read More: Kaynes Technology Subsidiary to Invest ₹4,995 Crore in Tamil Nadu!

Conclusion

The joint venture will create a semiconductor assembly and testing unit in Gujarat with an investment of  ₹3,330 crore. The project adds capacity to India’s growing semiconductor sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.