Mysuru-based Kaynes Technology is expanding its presence in the US. The company recently acquired Digicom Electronics, an electronics manufacturing services (EMS) company based in Oakland, California.
“This will help us to expand in the US market,” Deepak Chadha, chief executive-business operations at Kaynes Technology India Ltd, told ET. “We can do small build and prototyping in the US and when it comes to scale manufacturing, we can do it in India. Even the last mile box build can happen in the US, just before shipping it to customers in the US.”
Kaynes has also acquired 13.2% shares in California-based Mixx Technologies Inc to establish Kaynes as a “silicon to systems” manufacturer for artificial intelligence (AI) and high-performance computing infrastructure.
Incorporated in May last year, Mixx is a deeptech semiconductor startup bringing three-dimensional scalability to generative AI and high-performance computing systems by integrating the power of photonic circuits and advanced packaging, as per an exchange filing.
Vivek Raghuraman, chief executive at Mixx Technologies, told ET that this is a relatively new area for the semiconductor ecosystem because here they are using photons to transmit data instead of electrons.
The technology was first commercialised by Intel, Cisco and Broadcom. “Now with the advent of AI, there’s a rush to look at this technology by a lot more companies because of the benefits it brings in terms of power, performance and density,” he said.
In October, Kaynes broke ground for an outsourced semiconductor, assembly and test (OSAT) facility in Telangana at an investment of Rs 2,850 crore.
Kaynes listed on the NSE and the BSE in November 2022. The company raised Rs 1,400 crore in funding in 2023 from Nomura, Goldman Sachs, PSP Investments, Norges Bank, Carmignac, BNP Paribas and Acacia, among others.
“We are going to utilise this money in different phases and will set up our semiconductor (lines). We will look to set up our printed circuit board (PCB) lines too,” Chadha said.
The company has manufacturing infrastructure in Mysuru, Bengaluru, Chennai, Pune, Manesar and Parwanoo with service centres in Mumbai and Kochi.
“We are opening another PCB assembly plant in Pune and are expecting some revenue from it next year,” he said.
The company recently bought 17 acres of land in Chamarajanagar, Karnataka, and set up an EMS plant, which is operational now. In India, the company has 2,500 employees. It plans to increase the workforce in the country by 700-800 employees.
While PCB assembly accounts for 64% of the company’s revenue, 10% comes from original design manufacturing (ODM). “Around 30% of our revenue comes from box build where we offer turnkey solutions to our customers,” he said.
Source: Economic Times