YES Makes History: First Semiconductor Tool Shipped from India

Yield Engineering Systems, Inc. (YES), a leading provider of materials and engineering equipment solutions, has achieved a significant milestone by becoming the first company to ship a key semiconductor manufacturing tool from India. The VeroTherm Formic Acid Reflow tool, critical for advanced semiconductor applications, was dispatched from YES’s Sulur, Coimbatore facility to a prominent global semiconductor manufacturer.

This equipment plays a vital role in semiconductor fabrication by enabling 3D stacking of memory and logic chips, a fundamental technology for high-performance AI accelerators utilized in large language model (LLM) applications. As a key capital tool in semiconductor fabrication facilities (fabs), it facilitates wafer soldering within a controlled gas chamber environment.

Headquartered in Fremont, California, YES began operations at its Sulur facility in September 2024. After successfully shipping its first prototype to the United States in December 2024, the company completed its first commercial shipment by March 2025. The Sulur facility is strategically designed to serve both domestic and international customers, supporting India’s growing semiconductor supply chain. While global semiconductor equipment manufacturers like Applied Materials and LAM Research currently dominate the market, YES’s initiative marks a crucial step toward strengthening India’s presence in this sector.

With over 40 years of global operations, YES specializes in processing equipment for the semiconductor, display, and life sciences industries. Its Sulur facility aims to meet the increasing demand for innovative solutions, including VertaCure, VeroTherm, and VeroFlex systems for advanced wafer and panel-level packaging. The company is also focused on fortifying India’s local supply chain and generating employment opportunities. At present, YES employs around 70 personnel at its Sulur facility, an equal number at its design center in Coimbatore, and approximately 80 professionals in Bengaluru specializing in data analytics and other technical domains.

Government officials have lauded this achievement as a major milestone for India’s semiconductor industry. S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), stated, “The commencement of shipments from the YES manufacturing facility in Tamil Nadu represents a remarkable advancement for India’s semiconductor industry. This initiative aligns with our national vision of building a self-reliant and robust semiconductor ecosystem. We are committed to providing necessary support to foster further growth and innovation in this sector, reinforcing India’s position in the global semiconductor market.”

Tamil Nadu’s Minister for Industries, TRB Rajaa, underscored the government’s commitment to semiconductor investments, remarking, “We are immensely pleased that the first semiconductor equipment from the YES Sulur facility has been successfully shipped. This achievement is a testament to Chief Minister MK Stalin’s US visit last year and the Tamil Nadu Semiconductor and Advanced Electronics Policy. Our government remains dedicated not only to attracting investments but also to ensuring that these investments create employment opportunities. Despite global and national challenges, Tamil Nadu is steadfast in its mission to become a global semiconductor hub. That’s why the Tamil Nadu Budget 2025 has announced semiconductor manufacturing parks in Sulur and Palladam under a new ₹500-crore Semiconductor Mission.”

Ramakanth Alapati, Chairman and CEO of YES, reaffirmed the company’s commitment to India’s semiconductor industry, stating, “The first shipment from the Sulur facility is a testament to our unwavering dedication to strengthening India’s semiconductor ecosystem. This facility is fully integrated with our global manufacturing network, ensuring the reliability and technical expertise our customers expect.”

YES’s expansion in India represents a crucial step in reducing reliance on imported semiconductor equipment and enhancing India’s role in the global semiconductor supply chain.

News by Rahul Yelligetti.