UST, Kaynes to Build Rs 3,330 Cr OSAT Facility in Gujarat

New Delhi, Sep 29 (PTI) California-based technology firm UST on Monday announced a joint venture with Indian semiconductor manufacturer Kaynes Semicon to set up a Rs 3,330 crore OSAT (Outsourced Semiconductor Assembly and Test) facility in Sanand, Gujarat.

The investment paves the way for deeper collaboration between UST and Kaynes Semicon in driving innovation across electronics, electric vehicles, renewables, and consumer technology, while supporting India's push to become a global semiconductor hub, the company said in a statement.

"UST's worldwide presence and existing semiconductor client base make it a valuable partner for Kaynes Semicon, creating opportunities for new customers to leverage the benefits of Indian assembly and testing. The partnership will also take advantage of UST's digital engineering, AI-driven process improvements, and real-time data analysis, which are all essential for scale, reliability, and avoiding hidden costs," it said.

Kaynes Semicon, incorporated in 2008, operates as a wholly-owned semiconductor subsidiary of Kaynes Technology India Ltd.

Kaynes Semicon will allot 27,778 compulsorily convertible preference shares, offering up to 10 per cent share capital upon conversion, to US Technology International (UST) for collaboration in the semiconductor packaging business, according to an exchange filing earlier this month.

According to the filing, 5 per cent of the Share Capital shall be converted on a fully diluted basis on the closing date of the Securities Subscription and Shareholders' agreement (SSSA), and the conversion of the remaining 5 per cent is subject to the fulfilment of revenue-linked milestones as defined and agreed by the parties.