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Nasdaq-listed VCI Global, in collaboration with Kinesis Manufacturing Solutions, is set to establish India's first semiconductor wire manufacturing plant in Chennai.
Spanning 25,000 square feet, the facility will specialize in producing semiconductor bonding wires—an essential component in chip manufacturing. With an initial investment of $3.5 million, the plant is scheduled to begin operations in Q3 2025 with a single production line.
VCI Global will hold a 51% stake in the joint venture, while Kinesis will own 49%. The project will be led by Loh Beng Siew, a key figure in the Kinesis team and former leader of Ultra Clean Technology’s first factory in Malaysia.
Mass production is expected to commence within the same quarter, with projected revenue of up to $50 million and an anticipated return on investment (ROI) within 12 months. Future expansion plans include adding four production lines, targeting an annual revenue of $200 million.
“This strategic venture positions VCI Global as a key supplier in India’s semiconductor industry, strengthening our role in chip packaging and manufacturing,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global. “It also secures a high-margin revenue stream while aligning us with the world’s leading semiconductor players.”
News by Rahul Yelligetti.
