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How Kaynes Semicon Is Expanding Power-Module Production in India

Kaynes Semicon’s Sanand facility has reported IPM5 shipments and commercial production, following a planned transfer of Fujitsu power-module infrastructure. Production is established; current output and full transfer status are not.
From TheFinanceBase Team6 min to read
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Kaynes Semicon’s Sanand plant in Gujarat has moved from a 2025 plan to reported production: Kaynes said it shipped 900 IPM5 modules to Alpha and Omega Semiconductor (AOS) in October 2025, and AOS announced commercial IPM5 production at the site in April 2026. The fast-track plan began with Kaynes’ reported acquisition of Fujitsu General Electronics power-module production infrastructure and a proposed power-module center of excellence. The announcements establish production activity, but not the plant’s current output, utilization, or completion of every planned equipment transfer.

What is Kaynes Semicon doing in Sanand?

Kaynes Semicon, a wholly owned subsidiary of Kaynes Technology, is building power-module assembly and test capability at its Sanand outsourced semiconductor assembly and test (OSAT) facility in Gujarat. OSAT plants perform backend semiconductor work: they package dies into devices and test the resulting products. They do not, by that description alone, fabricate the semiconductor dies on silicon wafers.

The initiative combines an announced transfer of power-module production infrastructure with manufacturing work for semiconductor companies. The timeline matters: the 2025 account described a plan and intended transfer; later announcements provide evidence that Sanand production began and that IPM5 commercial production followed.

What was transferred from Fujitsu to Kaynes?

EE Times reported on June 25, 2025, that Kaynes had acquired Fujitsu General Electronics’ power-module production infrastructure in a transaction valued at ¥2 billion, approximately US$13.8 million. The report described the transfer as involving physical production lines, cleanroom infrastructure, and workforce, with potentially customer-qualified systems also moving to Kaynes.

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The reported plan was to establish a power-module center of excellence at Sanand and use the infrastructure to accelerate manufacturing capability. The interview provided a timetable and company intentions, not confirmation that every line, employee, or qualification system was transferred on schedule. The later production announcements establish activity at Sanand but do not settle the completion status of each transfer element.

How do the L&T and AOS relationships differ?

They are distinct relationships and should not be conflated. In the June 2025 EE Times interview, Kaynes Semicon CEO Raghu Panicker said the business unit itself had been sold to L&T Semiconductor Technologies. He described the initial focus as high-volume contract manufacturing, particularly for L&T, with a longer-term roadmap that included intellectual-property and packaging R&D co-development. Panicker characterized the planned arrangement this way: “This will be a contract manufacturing site,” he said. “We’ll be exclusive to each other for this engagement.” Those statements describe the plan at the time of the interview.

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  • Large component capacity: IGBT module is essentially a composite power device, which combines the advantages of bipolar power transistors and power MOSFETs in one
  • Energy-saving and stable: IGBT modules are also characterized by energy saving, easy installation and maintenance, and stable heat dissipation

Subsequent public announcements name AOS in connection with IPM5 manufacturing at Sanand. Kaynes Technology reported an IPM5 shipment to AOS in October 2025, and AOS announced commercial IPM5 production at Kaynes Semicon in April 2026. These announcements do not establish the commercial terms of either relationship.

What does power semiconductor packaging mean?

A power module brings power-semiconductor dies and their electrical connections together in a package designed to handle switching and power delivery in equipment. The package and its assembly matter because power devices can face high current, heat, and mechanical stress. Backend work includes assembling the dies, connecting them, packaging the device, and testing it against required specifications.

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Kaynes’ stated OSAT portfolio spans leadframe and wire-bond packages such as QFN, DFN, SOT, TO/TO-247, IPM and wire-bond BGA; flip-chip and higher-density platforms such as FC-QFN, FC-BGA, SiP and stacked die; and specialized MEMS and photonics configurations. The company also lists wafer sort, wafer-level burn-in, known-good-die enablement, final and strip testing, and power and automotive devices including SiC, GaN, IGBT and power modules. This is the company’s description of its capabilities, not independent confirmation that every listed process is commercially qualified or in production.

Has Kaynes Semicon started production?

Yes, the available announcements support saying that production commenced at the Sanand plant, while leaving the scale of output unresolved.

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  • October 15, 2025: Kaynes Technology said 900 IPM5 multi-chip modules had been assembled, tested, quality-cleared at Sanand, and shipped to AOS. This is a reported shipment milestone.
  • March 31, 2026: India’s Press Information Bureau (PIB) reported that Prime Minister Narendra Modi inaugurated the Kaynes Semicon plant at Sanand, marking production commencement. PIB said the facility was supplying intelligent power modules to a California-based company and that a large share of output had already been booked for export.
  • April 14, 2026: AOS announced that its proprietary IPM5 process had commenced commercial production at Kaynes Semicon’s facility.

Together, the government and AOS announcements support the conclusion that the site entered production and that IPM5 commercial production was announced. They do not quantify current daily output, establish full utilization, or prove that every Fujitsu line relocation was completed.

What the reported production figures do—and do not—show

Figure What the source reported How to interpret it
¥2 billion (about US$13.8 million) EE Times’ June 2025 account of the reported Fujitsu infrastructure transaction. A reported transaction value, not a measure of plant output or current investment.
900 IPM5 modules Kaynes Technology’s October 2025 report of modules assembled, tested, quality-cleared at Sanand, and shipped to AOS. A dated shipment milestone, not evidence of a recurring production rate.
6.3 million chips per day Kaynes Technology’s October 2025 release described this as designed facility capacity when fully operational and gave dated ramp expectations. A company-stated eventual design capacity and forecast, not a verified current run rate.
17 dies in one package AOS’s April 14, 2026 description of IPM5. AOS describes the package as integrating 17 dies. Kaynes’ 2025 release conflicts internally: an early section says 17 dies, while a later section says 15.

The figures describe different things: a reported infrastructure transaction, a shipment, a designed capacity, and a package configuration. They cannot be combined into a reliable estimate of present plant scale. The releases do not provide a like-for-like yield, utilization, or unit-cost comparison with other facilities.

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  • Small switching loss: its fast turn-on and turn-off speed, high operating frequency, and relatively small switching loss
  • Large component capacity: IGBT module is essentially a composite power device, which combines the advantages of bipolar power transistors and power MOSFETs in one
  • Energy-saving and stable: IGBT modules are also characterized by energy saving, easy installation and maintenance, and stable heat dissipation
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Why the capability matters—and what remains difficult

In the 2025 interview, Kaynes management presented the project as a way to add backend power-semiconductor capability to the company’s electronics manufacturing base, serve existing and new customers, and pursue applications including electric vehicles, railways, renewable energy, and aerospace. These were stated opportunities, not confirmation of customer wins in each sector.

Panicker also identified the work required to make the capability effective: transferring process knowledge, training and qualifying people, developing packaging and test R&D, and sourcing materials for high-power and high-current devices. Kaynes’ current R&D page describes work in packaging architecture, materials and interconnect engineering, process platform development, pilot builds, thermal and stress evaluation, and process validation. That outlines the company’s stated R&D scope; it is not independent performance data.

For readers comparing semiconductor investments, the relevant distinctions are whether a project fabricates wafers or performs assembly and test; which package and device types it targets; whether evidence shows plans, shipments, or commercial production; which customer relationships are named; and what is disclosed about qualification and testing. Here, production is documented, but current utilization, yields, and output are not.

What the announcements establish about India’s semiconductor ambitions

At the March 31, 2026 inauguration, PIB quoted Modi saying: “This is not just about one product , it is about India becoming a reliable semiconductor supplier in the global market,” asserted PM Modi. The release also quoted him: “Our target is to manufacture the maximum number of chips for our needs right here in India,” PIB cited industry estimates of a roughly US$50 billion Indian semiconductor market, projected to exceed US$100 billion by the end of the decade. Those are estimates cited in the government release, not a new independent market study.

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Kaynes Semicon’s Sanand project is specifically evidence of semiconductor backend activity—power-module assembly and test—not proof that the plant fabricates chips or that India has met broader supply-chain goals. Its reported shipment and later commercial-production announcement are meaningful milestones; the available figures do not establish how much the facility is producing today.

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