VCI Global Limited, a Malaysia-based investment holding company, and Kinesis Manufacturing Solutions are jointly setting up a semiconductor bonding wire manufacturing plant in Chennai, Tamil Nadu, with an initial investment of USD 3.5 million. The facility is scheduled to begin operations in the third quarter of 2025.
The 25,000-square-foot plant will initially operate with a single production line and is expected to enter mass production in the same quarter. According to the companies, the joint venture aims to generate up to USD 50 million in revenue during its first year, with an anticipated return on investment within 12 months. Future plans include expanding to four production lines and targeting annual revenue of approximately USD 200 million.
VCI Global will hold a 51 percent stake in the venture, while Kinesis will hold 49 percent. The facility will be operated by experienced personnel from Kinesis.
Chennai was chosen for its industrial infrastructure, skilled workforce, and growing electronics and chip design ecosystem. The project aligns with Tamil Nadu’s INR 5 billion Semiconductor Mission, which includes initiatives such as a fabless chip design lab in Chennai and electronics equipment parks in Sulur and Palladam.
The companies stated that localizing bonding wire production is intended to reduce import dependence—currently concentrated on China and Japan—and strengthen India’s domestic packaging and assembly capabilities. The venture also aims to support the government’s broader semiconductor ecosystem development goals.
VCI Global Limited is a Malaysia-based investment holding company involved in consulting and technology. Kinesis Manufacturing Solutions, also based in Malaysia, provides manufacturing solutions for the semiconductor industry.