Mitsui-Kaynes Semiconductor Partnership Boosts India Chips Drive

Mitsui & Co., Ltd. has announced a Mitsui-Kaynes semiconductor partnership with India’s Kaynes Semicon Private Limited and Japan’s AOI Electronics Co., Ltd.

This partnership will support the development of a semiconductor back-end manufacturing operation in India. The collaboration aims to strengthen global chip supply chains while accelerating the growth of India’s domestic semiconductor ecosystem.

Under the agreement, Kaynes Semicon is building capabilities in semiconductor assembly and testing, widely known as Outsourced Semiconductor Assembly and Test (OSAT). The project aligns with the Indian government’s Make in India initiative, which provides incentives and subsidies to boost semiconductor manufacturing. The Government of India has already approved the facility as part of its national semiconductor development framework.

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As part of the Mitsui-Kaynes semiconductor partnership, Mitsui will support Kaynes as it launches its OSAT operations. AOI Electronics, Japan’s largest OSAT company, will contribute technical expertise and operational knowledge in semiconductor back-end processing. This support will help establish manufacturing systems that meet global quality and reliability standards.

Mitsui will also assist Kaynes in commercializing products manufactured at the facility by supporting sales and market access. The company has secured exclusive rights to manage the procurement of raw materials sourced from Japanese-affiliated companies and other suppliers outside India.

Beyond procurement, Mitsui plans to help build partnerships with suppliers across India and internationally to ensure a stable semiconductor supply chain and smooth operations once the facility begins production. The agreement also allows Mitsui the option to acquire shares in Kaynes at a later stage, opening the door for deeper strategic cooperation.

Semiconductors power industries such as consumer electronics, automobiles, telecommunications, and artificial intelligence. Through this partnership, Mitsui aims to support a more resilient and geographically diversified global semiconductor manufacturing network.