Kaynes Technology India Limited , a leading electronic manufacturing services (EMS) company, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

The company's order book increased to INR 80,994.00 million, up from INR 54,228.00 million in the previous year, indicating strong demand for its services.

Half-Yearly Performance

For the first half of FY26, Kaynes Technology reported:

Key Developments

1. OSAT Facility Milestone: Kaynes Technology successfully delivered India's first commercially manufactured multi-chip module at its Sanand OSAT facility, in collaboration with Alpha Omega Semiconductor and Mitsui Company.

2. Government Approval: The company received government approval for advanced PCB manufacturing projects, marking a significant step in its transition from an EMS player to a fully integrated ESDM company.

3. Strategic Collaborations: Kaynes has entered into partnerships with global leaders such as Infineon, Alpha & Omega Semiconductor, and L&T Semiconductor, positioning itself at the forefront of India's semiconductor ecosystem.

4. PCB Manufacturing Expansion: The company is setting up a multilayer HDI PCB facility in Chennai, with plans for further expansion in the southern region of India.

5. Inorganic Growth: The integration of August Electronics is expected to add synergies, accessing new talent pools, customer bases, and high-margin markets.

Future Outlook

Kaynes Technology maintains its revenue guidance of $1 billion by FY28 and $2 billion by FY30. The company is focusing on:

• Transitioning from a service-led EMS model to a product-led ESDM-driven enterprise
• Implementing enterprise-wide systems and process harmonization
• Driving improvements in productivity, cost, and delivery
• Investing in IoT 4.0, low-cost automation, and advanced quality management systems

Ramesh Kannan, Executive Vice Chairman, commented on the results, stating, "These results reaffirm that meaningful growth comes from the alignment of vision, strategy and disciplined execution, a balance that enables us to build capabilities, deepens partnerships and shape the future of electronics manufacturing."

The company's strong performance and strategic initiatives position it well to capitalize on the growing demand for electronic manufacturing services in India and globally.

Kaynes Technology India Limited has achieved a significant milestone in India's semiconductor manufacturing sector by delivering the country's first commercial multi-chip module at its Sanand facility. This development marks a crucial step forward in India's efforts to establish itself in the global semiconductor industry.

Collaborative Effort

The company partnered with Alpha & Omega Semiconductor and Mitsui & Company for this groundbreaking project. This collaboration highlights the importance of international partnerships in advancing India's technological capabilities in the semiconductor field.

Significance for India's Semiconductor Sector

This achievement represents a major leap for India's semiconductor manufacturing capabilities. Multi-chip modules are advanced packaging solutions that integrate multiple integrated circuits into a single unit, offering improved performance and reduced size compared to traditional packaging methods.

Implications for Kaynes Technology

For Kaynes Technology, this development could potentially:

• Enhance its position in the electronics manufacturing services (EMS) sector
• Open up new opportunities in the high-value semiconductor packaging market
• Attract more international partnerships and investments

Industry Impact

The successful delivery of India's first commercial multi-chip module at Kaynes Technology's Sanand facility may have several industry-wide implications:

1. Boost to 'Make in India': This achievement aligns with the government's push for local manufacturing in high-tech sectors.
2. Skill Development: It may lead to increased demand for skilled professionals in semiconductor packaging and testing.
3. Supply Chain Localization: This could be a step towards reducing India's dependence on imported semiconductor components.

Ambitious Growth Plans

In a recent management update, Kaynes Technology announced ambitious growth plans:

• The company expects significant volume growth of over 50-60% in the second half.
• Management anticipates higher profit margins from their new PCB facility compared to current consolidated margins.
• Kaynes Technology has set a revenue target of $1.00 billion by FY28.

While this news marks a significant achievement, it's important to note that sustained efforts and investments will be necessary to establish India as a major player in the global semiconductor industry.

Kaynes Technology's latest accomplishment underscores India's growing capabilities in advanced electronics manufacturing and packaging. As the semiconductor industry continues to evolve, developments like these will be crucial in shaping India's role in the global supply chain.