Mitsui & Co., Ltd. has signed a strategic business partnership agreement with Kaynes Semicon Private Limited and AOI Electronics Co., Ltd. to support the establishment of a semiconductor back-end manufacturing business in India. The partnership is intended to support the launch and operation of Kaynes’ outsourced semiconductor assembly and test (OSAT) operations, with production targeted to begin in the second half of 2026.
The agreement will combine Kaynes’ planned OSAT operations in India with technical support from AOI Electronics and supply chain support from Mitsui. The project has also been approved by the Government of India as an eligible initiative under the country’s semiconductor support framework.
Under the agreement, Mitsui will assist Kaynes in establishing its OSAT operations by leveraging AOI Electronics’ expertise in semiconductor back-end processing and by supporting the sales of products manufactured by Kaynes. Mitsui has also secured exclusive rights to handle raw materials procured by Kaynes from Japanese-affiliated suppliers and suppliers located outside India.
Mitsui will coordinate with suppliers within and outside India to support the launch and stable operation of the business. The agreement also grants Mitsui the right to acquire shares in Kaynes in the future, with the companies stating that they will explore the potential for further strategic involvement.
Semiconductors are considered strategic components for digital technologies, and several countries have been working to expand domestic manufacturing capacity and diversify supply chains. The partnership is intended to support the development of semiconductor manufacturing capability in India through the establishment of back-end assembly and testing capacity.
Kaynes obtained approval from the Government of India in September 2024 to start an OSAT business. The company plans to begin operations at its facility under construction in Sanand, Gujarat, during the second half of 2026.
Kaynes Semicon Private Limited, headquartered in Sanand, Gujarat, was established in April 2023 and operates in the semiconductor back-end processing sector. The company had 133 employees as of February 2026 and is a wholly owned subsidiary of Kaynes Technology India Limited, which operates in electronic manufacturing services.
