By July, Kaynes Semicon, a business situated in Mysuru, may become the nation’s first manufacturer of packaged semiconductor chips. This would be a significant milestone for the India Semiconductor Mission 1.0. The schedule was confirmed by senior government officials and Kaynes CEO Raghu Panicker. According to Panicker, the clean room facilities and machinery are expected to be finished by early May, and the pilot line is “almost” finished. According to him, the first samples will be delivered to the US semiconductor company Alpha Omega Semiconductor in July, while qualification testing is scheduled for June. According to Panicker, prior to the permission, the company had been getting ready for clients, technological partners, and building designs.
Kaynes’ Planning for the Future
The cabinet gave Kaynes permission in September of last year to invest INR 3,307 crore in the establishment of an outsourced semiconductor assembly and test (OSAT) plant in Sanand, Gujarat. The facility will be able to make 6.3 million chips every day. Alpha Omega Semiconductor and Kaynes have reached a multi-year deal for Kaynes to package and test 12 distinct packages. These consist of a power MOSFET, an insulated-gate bipolar transistor, and an intelligent power module (IPM). Initial production samples will be sent by the company for assessment in July and August. The company has inked a definitive multi-year arrangement with Alpha Omega Semiconductor, and in the first phase, they would use about 60% of its capacity, Panicker told a media house. Kaynes anticipates making millions of dollars during the course of the multi-year agreement.
Three Other Firms Received Approval from the Centre
The cabinet also approved three more companies: Micron, Tata Electronics, and CG Power. Additionally, Tata Electronics is establishing the first wafer production facility in India. Tata Electronics obtained cabinet permission for its OSAT and fab in February of last year. Meanwhile, Micron gained cabinet approval for its ATMP in June 2023. In February of last year, the cabinet also approved CG Power’s OSAT. According to Panicker, Kaynes has four customers lined up in addition to Alpha Omega, including in the US and Japan. The company will shortly reveal its second customer. The company will concentrate on high-voltage packages for satellites and air conditioners. With a new PCB facility in Tamil Nadu and other projects in Madhya Pradesh and Odisha, Kaynes is also growing its presence. With this sector, Kaynes will make its debut in the state of Tamil Nadu, where the facility will concentrate on bare board PCBs.
Panicker stated, “We are considering our options in Odisha and Bhopal (Madhya Pradesh),” suggesting that these initiatives would also fall within the semiconductor industry but not PCB production. 50% of the investment in the Kaynes chip assembly factory, or INR 1,653.5 crore, would come from the Centre, with the Gujarat government providing the remaining 20%. The company is making the remaining 30% of the investment, or INR 992.1 crore. However, the corporation and the central government have not yet signed the fiscal assistance agreement. In December 2023, Kaynes raised money for the same purpose.
According to a statement released by the American chipmaker on 18 September, Analog Devices (ADI) and the Indian giant Tata Group have inked a pact to examine the possibility of manufacturing semiconductor goods in India.
To construct India’s first semiconductor production facility in the state of Gujarat and a chip-assembly and testing facility in the state of Assam, the electronics-manufacturing arm of the 156-year-old business, Tata Electronics, intends to invest a total of $14 billion.
At the beginning of this year, India gave its approval for the construction of the semiconductor plant owned by the Tata Group.
According to a statement released by Analog Devices, Tata Electronics, and Autodesk want to investigate the possibility of manufacturing ADI’s products in the facility located in Assam and the manufacturing plant located in Gujarat that belongs to Tata Electronics.
Prime Minister Pushing to Make India a Hub of Semiconductor Manufacturing
In the past, the Prime Minister of India has expressed his desire to establish India as a global centre for the design, production, and development of technology related to semiconductors. He has previously indicated that the semiconductor business in India is on the verge of a revolution, and that the industry is going to undergo a transformation as a result of breakthroughs.
“India as it exists today instills confidence in the rest of the globe. It is possible to place an investment on India while the chips are down,” he said.
For the semiconductor manufacturing industry around the world, which is currently experiencing a churn as a result of increasing tensions between the United States and China, Modi’s comments came at a crucial time. There is a chance that prominent chip makers like Taiwan would be targeted, which might create chances for countries like India, which has significantly increased its capacity to produce semiconductors domestically.
In the beginning of this month, the state of Maharashtra has announced that Adani Group and Tower Semiconductor, which is based in Israel, would come together to invest $10 billion in a chip project. Additionally, the semiconductor division of the infrastructure company Larsen & Toubro, which is responsible for the design of semiconductors for automobiles, intends to construct a factory in the future as well.
Specifications of the Deal
ADI’s products will also be utilised by Tata Motors in the production of electric vehicles, as well as by Tejas Networks in the development of their telecom infrastructure, according to the firms.
The companies did not provide any information regarding the products that would be manufactured in India or the products that Tata would want to use.
There have been announcements made by multinational corporations such as NXP Semiconductors and Micron regarding their intentions to invest and construct facilities in the country.
A top official from Tata Consultancy Services (TCS) has stated that the conglomerate is working along with Tata Electronics Pvt Ltd to achieve its goal of introducing India’s first chips that are created domestically by the year 2026, as reported by a media outlet,
The news article cited details provided by Sreenivasa Chakravarti, VP and head of TCS’s digital engineering division worldwide. Chakravarti said that TCS, a firm that focuses on semiconductor design and engineering, is involved in the chip manufacturing process at various stages, with Tata Electronics at the forefront. Additionally, Chakravarti brought attention to several additional shared services, such as software solutions and goods based on intellectual property (IP) for semiconductors.
At present, a significant number of companies are establishing operations in India to develop technologies and services for global markets. However, there is also a market for semiconductors in India. As a result, Chakravarti believes that the issue is to construct something for India from within India.
India Semiconductor Mission
As part of efforts to improve the semiconductor industry, the India Semiconductor Mission gave its approval in February for the establishment of three manufacturing facilities for semiconductors. There are two of these projects that are being developed by Tata Electronics as the principal company. The first of these is a greenfield chip manufacturing plant in Dholera, Gujarat, that will be constructed in conjunction with Taiwan’s Powerchip Semiconductor (PSMC) and will have an initial output capacity of 50,000 wafers per month. The plant will cost $11 billion. According to the reports, the second factory is located in Assam and is valued at $3.26 billion. Its primary focus is on chip assembly and testing.
The first chips to be manufactured at the Assam facility are expected to be made accessible by Tata Electronics by the end of 2025 or the beginning of 2026. The company intends to target businesses such as the automotive, electronics, power, consumer goods, and healthcare sectors.
First Indian Technology Services Company With Expertise in Semiconductor Engineering
TCS is the first Indian technology services company to create a robust capability in semiconductor engineering and services, according to Omkar Tanksale, a senior IT research analyst at Axis Securities. Globally, TCS has a substantial presence in the fields of semiconductor design, engineering, and software development for applications involving semiconductors.
Throughout the course of the year, Tata Electronics has been establishing collaborations with a wide variety of worldwide companies and nations in order to supply semiconductor chips.
Tesla has entered into a strategic agreement with Tata Electronics in April to acquire semiconductor processors for its global operations.
Additionally, a few days ago, Tata Electronics and Tokyo Electron Limited (TEL) inked a memorandum of understanding (MoU) with the purpose of establishing a semiconductor equipment infrastructure.
At 7, Lok Kalyan Marg on 11 September 2024, Narendra Modi, the prime minister of India, presided over the Semiconductor Executives’ Roundtable. A broad variety of topics about the semiconductor industry were covered by the prime minister. PM Modi discussed the potential of this industry to advance Earth’s growth path. In addition, he emphasized how India is becoming an attractive investment location due to the reforms that are currently underway.
The chief executive officers praised India’s efforts to expand the semiconductor industry and said that the gathering of industry heavyweights here today was a first.
Key Pillars of India’s Development Strategy
Improving physical, digital, and social infrastructure; encouraging inclusive growth; lowering regulatory burdens; and drawing investments in manufacturing and innovation were among Modi’s main points during the summit, which formed the basis of India’s development plan. He highlighted India’s ability to join a diverse global semiconductor supply chain as a dependable partner, thanks to its trained workforce and expanding talent pool.
The head of state assured the business leaders of a steady and predictable policy environment while reiterating the government’s pledge to back the sector through its ‘Make in India‘ and ‘Make for the World’ programmes. Modi added that India is trying to attract high-tech investments and that the government will step up its efforts in response to the positive response from semiconductor industry executives.
Acknowledging the government of India, Chandan Kumar GV, Vice President, Client Engagement at Indxx stated, “India currently grapples with a significant shortfall in chip manufacturing, leading to heavy reliance on imports. To address this challenge, the government has adeptly seized the opportunity presented by global supply chain disruptions from the pandemic to position India as a viable alternative to China in the semiconductor market. Central to this strategy is the India Semiconductor Mission (ISM), which aims to develop a robust domestic semiconductor ecosystem and lessen dependence on foreign technology.”
“The ISM launched in December 2021 with an initial allocation of Rs. 76,000 crore (US$ 9.2 billion) represents a bold step toward transforming the sector. This initiative includes substantial government support, covering up to 50% of project costs through schemes like the Semiconductor Fab Scheme and Display Fab Scheme,” he added.
Attendees of the Roundtable and Their Confidence in India
Many prominent semiconductor companies’ CEOs and executives were present at the roundtable, including SEMI, Micron, NXP, PSMC, Renesas, Applied Materials, and countless more. Notable faculty members from Stanford, UC San Diego, and IIT Bhubaneswar were also in attendance.
Not just in terms of manufacturing, but also in terms of the production of raw materials, attendees voiced their opinion that India possesses the potential to become a worldwide powerhouse in the semiconductor supply chain. The corporate business leaders all agreed that India is the new investment destination, a belief that was strengthened by their pleasant experiences with Prime Minister Modi in the past.
India Backing the Semiconductor Industry
The plan to build a semiconductor factory in Sanand, Gujarat, with a daily chip manufacturing capacity of 6 million and an investment of INR 3,300 crore was given the green light by the Union Cabinet on September 2. The unit is a part of a larger government programme that includes four other semiconductor facilities in the works in Gujarat and Assam. These plants have a combined investment of around INR 1.5 lakh crore and can produce 70 million chips per day.
The upcoming SEMICON India 2024, which is scheduled to be hosted in Greater Noida, will also showcase the country’s advances in the burgeoning semiconductor ecosystem.
A strategic relationship between Tata Electronics and Tokyo Electron (TEL) has been established to accelerate the construction of semiconductor infrastructure for two large projects in India. In addition to providing support for Tata’s plans, which include the creation of India’s first semiconductor fab in Dholera, Gujarat, and an advanced assembly and test facility in Jagiroad, Assam, the relationship was formalized by a Memorandum of Understanding.
Through the provision of semiconductor equipment, the training of Tata’s workers, and the contribution to ongoing research and development initiatives, TEL will play a significant part in the company’s operations.
According to Toshiki Kawai, President and Chief Executive Officer of Tokyo Electron, this strategic relationship encompasses both front-end fabrication and back-end packaging technologies. It exemplifies our dedication to providing Tata Electronics with great support and value.
Massive Investment for Creating Favorable Infrastructure
In India’s semiconductor industry, Tata Electronics is making significant progress thanks to a combined investment of INR 1.18 lakh crore. Both the Gujarat fab, which will be funded with INR 91,000 crore, and the Assam facility, which will be funded with INR 27,000 crore, are planned to develop semiconductor chips for major applications in the automotive, mobile device, and artificial intelligence industries to serve a global market.
The Partnership Is Aligned With Tata Electronics’ Set Goals
Many people believe that cooperation with TEL is an essential step towards attaining the execution goals that Tata Electronics has set for itself.
According to a statement from Dr. Randhir Thakur, Managing Director & CEO of Tata Electronics, TEL has a track record of strong customer relationships and its knowledge of semiconductor equipment will contribute to the development of an evolving ecosystem that will facilitate the prompt activation of our Fab and advanced packaging facilities. The customer-centric approach that TEL offers to our cooperation is something that we are very enthusiastic about.utilized
About TEL
Tokyo Electron Ltd. (TEL) is a company that manufactures and distributes equipment for the fabrication of semiconductors and flat panel displays. They are also a maker of electronics, FPD, and semiconductor equipment. A wide variety of SPE systems that cover the primary chip production processes are developed by the company, and these systems are then supplied to producers of semiconductor devices all over the world. TEL provides high-performance FPD manufacturing equipment to FPD producers all around the world.
This equipment is utilized in the creation of screens for LCD televisions, personal computers, and other electronic devices. To produce organic light-emitting diode (OLED) systems, the company’s FPD products include coater/developers, plasma etch/ash systems, and inkjet printing systems. Asia, North America, and Europe are the three regions in which the company’s operations are dispersed. Located in Minato-Ku, Tokyo, Japan, TEL’s headquarters are located.
Reports indicate that government officials are contemplating a five-year extension of the budgetary assistance period under the second phase of the India Semiconductor Mission (ISM) to eight years.
According to a senior government official, applicants whose projects are approved under ISM Phase II may be eligible for additional financial grants to train their employees, an option for an additional interest-free loan from the government, and a preferential supply of domestically manufactured and packaged chips.
“After the first phase of the ISM was successfully implemented, we learned a lot.” according to the official, they have been receiving feedback from industry professionals and experts all over the world and are making an effort to include as much of it as possible.
Possible Blueprint for Phase II
The source did mention that the second phase of the mission might see an increase in administrative spending and a withdrawal of funding for technology transfer costs.
According to a renowned media outlet, the IT ministry is reportedly planning to reallocate funds from the second phase of the ISM away from chip packaging factories and towards semiconductor fabrication companies in India.
An official said that the incentives for outsourced assembly and testing and assembly, testing, marking, and packing units would be reduced to less than 30% on a pari-passu basis in the next phase of the ISM, down from the present 50%.
According to the official, we will also include more explicit instructions for reimbursement in the proposal itself. These are the initial concepts that have been deliberated.
An additional incentive of 30–35% of the total capital expenditure used to establish units for gases, chemicals, raw materials, metals, and other metallurgy could be offered to successful candidates, according to the official.
5 Semiconductor Projects Approved by GOI
A chip manufacturing plant for Tata Group-Powerchip Semiconductor Manufacturing Corp in Dholera, Gujarat, and four chip packaging units, three in Sanand, Gujarat, and one in Morigaon, Assam, were sanctioned by the government as far under the first phase.
An investment plan to establish a semiconductor chip manufacturing unit at Taloja in Panvel, proposed by a joint venture between Tower Semiconductor and Adani Group, was authorized last week by a cabinet panel in Maharashtra. The proposed investment is $10 billion.
The Navi Mumbai suburbs in Raigad district are home to the projected Tower Semiconductor-Adani Group factory, which will initially have a capacity of 40,000 wafer starts per month (WSPM) and will subsequently be increased to 80,000 WPSM. The first phase investment will amount to INR 58,763 crore, while the second phase investment will account for the remaining INR 25,184 crore of the overall project investment.
This would be the sixth project of its kind to receive central government approval in India; if the ISM gives its blessing, it will become the country’s second chip production facility.
Kaynes Semicon, headquartered in Mysore, has previously requested and received approval from the Union Cabinet to establish an outsourced assembly and testing operation in Sanand, Gujarat, costing INR 3,307 crore. It is anticipated that the Kaynes Semicon plant can produce 6.3 million chips daily.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Advantest.
The semiconductor industry is home to companies engaged in designing and manufacturing semiconductors and semiconductor devices. With the projected growth from $481 billion in 2018 to $726.73 billion by 2027, the semiconductor industry offers lucrative opportunities for related companies.
Not only semiconductor designers or manufacturers can survive and thrive in the industry, but also companies involved in developing test systems for semiconductors have the potential to capture the market.
Advantest is a Japanese leading manufacturer of automatic test equipment (ATE) and measuring equipment for the semiconductor industry.
Let’s learn how Advantest was established, its mission and vision, investments, acquisitions, challenges, growth, and a lot more.
Founded in 1954, Advantest is a globally recognized designer, manufacturer, and supplier of testing systems. It offers component and semiconductor test systems along with mechatronics-related products. The company’s leading-edge systems and products are integrated into technologically advanced semiconductor production lines worldwide.
The company is known for serving worldwide with its offices located across many countries, including Japan, America, Europe, Singapore, Taiwan, the Republic of Korea, and China.
Advantest – Founders And Team
Ikuo Takedo is the founder of the company. Presently, Yoshiaki Yoshida is the President and Group CEO and Douglas Lefever is the Group COO of Advantest. Moreover, it is currently employing over 6,000 employees in all its offices.
Yoshiaki Yoshida, and Douglas Lefever, Present CEO and COO – Advantest
Advantest – Startup Story
Formerly known as Takeda Riken Industry Co. Ltd, Advantest was founded in 1954. Initially, the company was established as a maker of electronic measuring instruments. It is in 1972 that it entered the semiconductor testing business. Furthermore, the company commenced trading on Tokyo Stock Exchange in 1983 and changed its name to Advantest Corporation in 1985.
Advantest expanded its semiconductor test business by establishing its North American subsidiary in 1982 and its European operations in Munich in 1983. It entered the New York Stock Exchange market in 2001.
In 2002, Advantest emerged as one of the founding member companies to establish the Semiconductor Test Consortium (STC) – the first international, industry-wide collaboration. In 2004, the company marked its 50th anniversary and relocated its headquarters to the Shin-Marunouchi Center Building in Marunouchi, Tokyo.
It entered the mask CD-SEM business and launched the T5501 and T5588 DRAM memory test systems and the M6300 memory handler in 2005. Astronic Corporation sold its semiconductor test business to Advantest for $185 million in 2018.
Advantest focuses on manufacturing automatic test and measurement equipment required to design and produce semiconductors for multiple applications, including 5G communications, IoT, AI, machine learning, autonomous vehicles, and more.
How Advantest Helps to Revolutionize 5G Technology
Moreover, it conducts R&D for addressing emerging test challenges and applications, producing scanning electron microscopes for photomask manufacturing, developing advanced test-interface solutions for wafer sort and final tests, and offering system-level test solutions and other important test-related accessories.
It is recognized for offering SoC test systems, memory test systems, device interfaces, test handlers, SSD test systems, SEM metrology/review, Terahertz systems, electronic measuring instruments, leading-edge products, system level test systems, cloud testing service, test cell and automation solutions, and related products.
When it comes to global services, the company offers consulting services, uptime services, equipment leasing services, and customer support services.
Advantest – Challenges Faced
Advantest faces multiple challenges in its businesses, such as increased pressure from its targeted customers for developing semiconductor and component test systems, mechatronic systems that could reduce testing costs, and catering to the customers that have already come up with internal test solutions.
Advantest – Investment
Advantest has made 3 investments and the most recent one was made on September 23, 2021, when proteanTecs raised a total of $50 million.
Date
Funding Round
Organization Name
Money Raised
Lead Investor
September 23, 2021
Series C
proteanTecs
$50 million
–
November 7, 2007
Series A
D2S
$9.2 million
–
May 11, 2007
Series A
D2S
$4 million
–
Advantest – Mergers And Acquisitions
The company has made 4 acquisitions by spending more than $1.10 billion and 2 investments. Its latest acquisition was R&D Altanova which was made in October 2021. The other three companies acquired are Essai (January 2020), W2BI (April 2013), and Verigy (December 2010).
Advantest – Patents and Trademarks
The company’s intellectual property currently includes 1,938 registered patents, primarily in the category of ‘Testing.’ Furthermore, it has 29 registered trademarks categorized into the ‘scientific and electric apparatus and instruments’ class.
Advantest – Growth
The estimated revenue of the company in 2022 is $3.88 billion per year, which increased by 13.92% last year. Moreover, the market capitalization of Advantest as of February 2023 is reported to be at $14.16 billion which makes it the world’s 1165th most valuable company.
Advantest – Awards And Achievements
Advantest has garnered a myriad of prestigious awards over 69 years and the recent ones are:
Gold medal in the 2022 Gomez IR Site Rankings by Broadband Security Co. Ltd
Director-General’s Award for Factory Greening by Kanto Bureau of Economy, Trade, and Industry
Laser Industry Award for TAS7500 Terahertz Spectroscopic Imaging System as an Excellent Product
IR Good Visual Award
Recognized as the World’s #1 ATE Supplier and the Best large Supplier of Chip Making Equipment in the Annual Customer Satisfaction Survey
Supplier Excellence Award by iTest Inc
Advantest – Competitors
Its primary competitors in the semiconductor and component test system and mechatronics system-related market include:
Teradyne inc.
Cohu Inc.
YIK Corporation
UniTest Inc.
Exicon Ltd.
TechWing Inc.
Hon Precision Inc.
Advantest – Future Plans
Advantest is looking forward to expanding its business domains beyond developing and selling semiconductor volume production test systems to include adjacent markets, including semiconductor design, evaluation processes and product, and system-level test processes.
For achieving the same, the company will engage in five strategic issues, including investing strategically, reinforcing core businesses, seeking operational excellence, pioneering new business fields, exploring value to reach a higher level, and promoting ESG initiatives. It is also seeking ways to minimize the environmental impact on the planet and communities.
FAQs
What products and services does Advantest offer in the semiconductor testing industry?
Advantest offers semiconductor testing solutions such as test systems, handlers, probes, and measurement instruments, along with consulting, maintenance, and training services to ensure quality and reliability of semiconductor devices.
What kinds of semiconductor devices can be tested using Advantest’s solutions?
Advantest’s semiconductor testing solutions can be used to test a wide range of devices, including microprocessors, memory chips, system-on-chip (SoC) devices, power management ICs, and other types of specialized integrated circuits.
What is Advantest’s main business focus?
Advantest provides advanced semiconductor testing solutions and services to ensure quality and reliability of semiconductor devices before they are shipped to customers.
