India is making strides in the semiconductor industry, strengthening its role in the global supply chain. VCI Global Limited is partnering with Kinesis Manufacturing Solutions Sdn Bhd (“Kinesis”) to set up the country’s first manufacturing facility for semiconductor wires.
This semiconductor development aligns with India’s effort to create a sustainable and self-reliant semiconductor ecosystem.
Based in Chennai, the facility will manufacture bonding wires used in chip production. Spanning 25,000 square feet, it requires an initial investment of US$3.5 million and is expected to begin operations by the third quarter of 2025.
The first production line is set to reach full-scale production within the same quarter, generating up to US$50 million. The initial investment is expected to pay off within a year. Plans include adding three more production lines, targeting an annual revenue of around US$200 million.
India’s push to become a global semiconductor leader is matched by its Smart Cities Mission and growing demand for fabrication and packaging solutions.
IMARC forecasts India’s semiconductor materials market will hit US$8.1 billion by 2033, with a compound annual growth rate (CAGR) of 5.22% from 2025 to 2033. Increased foreign investment and government incentives are driving this growth and boosting the localization of supply chains.
VCI Global and Kinesis aim to reduce reliance on imports while enhancing the country’s ability to meet domestic and international demand for essential semiconductor components.
Key semiconductor investments in India include:
- Lam Research Corporation: Investing US$1.2 billion in a manufacturing plant in Karnataka.
- Micron Technology Inc: Developing a semiconductor assembly and testing facility in Gujarat with an investment of US$2.75 billion.
- Crompton Greaves Limited: We are partnering with Renesas Electronics America Inc. and Star Microelectronics (Thailand) Public Co Ltd to build an outsourced assembly and testing unit, with a total investment of US$877 million.
- Powerchip Semiconductor Manufacturing Corporation: Working with Tata Electronics Private Limited to set up a Dholera Special Investment Region (SIR) fabrication plant. This project, valued at US$11 billion, aims to start production by 2026.
In the VCI Global-Kinesis joint venture, VCI Global will hold a 51% stake, and Kinesis will control the remaining 49%. Mr. Loh Beng Siew, a seasoned professional with experience leading Ultra Clean Technology’s first factory in Malaysia and helping AllianceCorp Manufacturing Sdn Bhd achieve milestones in semiconductor equipment manufacturing, will lead the project.
The Kinesis team’s expertise in building and managing semiconductor facilities adds to the project’s strong foundation.
“With this venture, we aim to lead India’s semiconductor wire market and support the country’s chip manufacturing efforts,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global.
“This facility positions us as a key supplier in an essential segment of the semiconductor supply chain. As India ramps up local production and attracts global players, we are seizing the opportunity to establish a reliable and high-margin revenue source.”
About VCI Global Limited
VCI Global is a multi-industry holding company focused on AI, robotics, fintech, cybersecurity, renewable energy, and capital market consultancy. The company drives innovation and sustainable growth across various sectors with operations in Asia, Europe, and the US.
About Kinesis Manufacturing Solutions Sdn Bhd
Kinesis specializes in high-precision manufacturing and semiconductor production support. With extensive experience building and optimizing supply chains, Kinesis delivers efficient and scalable semiconductor solutions worldwide.
For more information, visit VCI Global.
