Kaynes SemiCon, a subsidiary of the Indian EMS Kaynes Technology, has entered into a strategic partnership with Recynergy Technology, a Taiwan-based company specializing in semiconductor backend test engineering. This collaboration aims to transfer semiconductor manufacturing technology and supply chain knowledge from Taiwan to India, utilizing the skilled engineering workforce in India to meet local and global semiconductor needs.
Recynergy Technology, established in 2009 and led by CEO Samson Hsu, has developed a significant, albeit niche, presence in the semiconductor industry. The company employs a workforce with a 90 percent engineering background, focusing on services such as test program development & integration, test fixture design & production, automotive IC test, Big Data platform integration & analysis, failure analysis, and stock reliability analysis engineering.
This announcement follows closely on the heels of Kaynes SemiCon’s collaboration with Aptos Technology, a Taiwan Mask Corporation (TMC) subsidiary, which was announced as a partnership focusing on training and technology licensing in semiconductor packaging and testing.
“The partnership between Kaynes SemiCon and Recynergy Technology is intended to support the mutual long-term success of their customers and suppliers globally, aiming to enhance the competitive edge of supply chains,” said Ramesh Kannan, MD and promoter of Kaynes Technology.
From ATE engineering to testing strategy
This deal is a significant follow-up to Kaynes SemiCon’s prior partnership with UST for ATE engineering. It fits into the company’s comprehensive go-to-market strategy within the semiconductor sector, which utilizes its ATE capabilities to improve test methodology and strategy. Building on this strategy, Recynergy will contribute to test program development and support, thus enhancing the partnership’s collective efforts to advance semiconductor testing capabilities.
The latest move represents a step towards building a comprehensive Outsourced Semiconductor Assembly and Test (OSAT) ecosystem in India, focusing on transferring engineering applications and technology, especially in assembly, test, and reliability, from Taiwanese OSATs to India. The collaboration aligns with efforts by Kaynes SemiCon and other Indian semiconductor firms to advance the semiconductor industry in India.
The partnership highlights India’s increasing role in the global semiconductor market, emphasizing the potential for collaboration to foster technological development and manufacturing capabilities. It aims to meet the growing semiconductor demand worldwide and contribute to advancing India’s technological and manufacturing sectors.
Kaynes SemiCon’s expansion plans
Kaynes SemiCon has announced plans to launch the first line of OSAT by the first week of April 2024. Raghu Panicker, CEO of Kaynes SemiCon, mentioned in a previous interview with Digitimes Asia that the company is preparing for several upcoming announcements.
Developing its OSAT division has been a significant goal for the company. Panicker stated that the company aims to grow this division’s revenue to a billion dollars over the next six to seven years and prepare it for a public listing.
Panicker highlighted the strategic approach, mentioning that achieving these targets involves expanding the team, enhancing technology partnerships, and engaging with market experts and consultants. These efforts underline Kaynes SemiCon’s goals for the growth and market readiness of its OSAT division.