Prime Minister Narendra Modi has announced that the Indian government is developing a new Design Linked Incentive Program, a move that could potentially benefit companies in the electronics manufacturing sector, including Kaynes Technology India Limited .

Design Linked Incentive Program

The announcement of the Design Linked Incentive Program comes as part of the government's efforts to boost domestic manufacturing and design capabilities in the electronics sector. While specific details of the program are yet to be revealed, it is expected to provide incentives for companies engaged in the design and development of electronic components and systems.

Potential Impact on Kaynes Technology

Kaynes Technology India Limited, a prominent player in the electronics manufacturing services (EMS) sector, could potentially benefit from this new initiative. The company, which specializes in design and manufacturing services for various industries, including automotive, industrial, and aerospace, may find new opportunities for growth and innovation under this program.

Recent Developments at Kaynes Technology

While the announcement of the Design Linked Incentive Program is a significant development, Kaynes Technology has also been making strategic moves to strengthen its position in the semiconductor industry. According to a recent corporate filing:

• Kaynes Semicon Private Limited (KSPL), a wholly-owned subsidiary of Kaynes Technology India Limited, has executed a Securities Subscription and Shareholders' Agreement (SSSA) with US Technology International Private Limited (UST).
• The agreement involves the issuance and allotment of Compulsorily Convertible Preference Shares (CCPS) by KSPL to UST.
• The collaboration aims to focus on Outsourced Semiconductor Assembly and Test (OSAT) operations in India.

Key Points of the SSSA

• KSPL will issue CCPS to UST, not exceeding 10% of the Share Capital as of the closing date.
• 5% of the Share Capital will be converted on a Fully Diluted Basis on the closing date of the SSSA.
• The conversion of the remaining 5% is subject to fulfillment of revenue-linked milestones.

This strategic partnership could potentially position Kaynes Technology to take advantage of the upcoming Design Linked Incentive Program, particularly in the semiconductor design and manufacturing space.

As the details of the new incentive program unfold, it will be interesting to see how companies like Kaynes Technology leverage this opportunity to enhance their design capabilities and contribute to India's growing electronics manufacturing ecosystem.

Management Changes

In a separate development, Kaynes Technology has announced the resignation of Mr. Govind S Menokee, who served as the Head of Information Technology. Mr. Menokee's resignation is effective from the closing business hours, as he pursues new opportunities outside the organization.

As the electronics manufacturing sector in India continues to evolve with government support and industry collaborations, companies like Kaynes Technology are likely to play a crucial role in shaping the future of the industry.

Kaynes Technology India Limited (KTIL) has announced a significant move in the semiconductor industry through its wholly-owned subsidiary, Kaynes Semicon Private Limited (KSPL). The company has entered into a collaboration agreement with US Technology International Private Limited (UST) for Outsourced Semiconductor Assembly and Test (OSAT) operations in India.

Collaboration Details

KSPL has executed a Securities Subscription and Shareholders' Agreement (SSSA) with UST on September 1, 2025. As part of this agreement, KSPL will issue Compulsorily Convertible Preference Shares (CCPS) to UST, which will be convertible into equity shares.

Key Terms of the Agreement

• KSPL will issue CCPS to UST, not exceeding 10% of the share capital as of the closing date of the SSSA.
• The conversion of CCPS into equity shares will occur in two phases:
  1. 5% of the share capital will be converted on a fully diluted basis on the closing date of the SSSA.
  2. The conversion of the remaining 5% is subject to the fulfillment of revenue-linked milestones agreed upon by both parties.

Share Allotment Details

KSPL will allot 27,778 Compulsorily Convertible Preference Shares, which will be converted as follows:

• 13,158 CCPS will be converted into 13,158 equity shares, representing 5% of the share capital on the closing date of the SSSA.
• The conversion of the remaining 14,620 CCPS is contingent on meeting the revenue-linked milestones outlined in the SSSA.

Impact on Kaynes Technology India Limited

The company has stated that this transaction will not have any impact on its management. It's worth noting that the transaction does not fall within the ambit of related party transactions.

Strategic Implications

This collaboration between KSPL and UST marks a significant step in Kaynes Technology's expansion into the OSAT sector in India. The partnership aims to leverage the strengths of both companies to capitalize on the growing semiconductor industry in the country.

The move aligns with India's push to become a global hub for semiconductor manufacturing and testing, potentially positioning Kaynes Technology and its subsidiary KSPL as key players in this rapidly evolving sector.

As the semiconductor industry continues to grow in importance, particularly in light of global supply chain challenges, this strategic collaboration could provide Kaynes Technology with a competitive edge in the OSAT market.