Malaysia based VCI Global announced setting up of India’s first semiconductor wire manufacturing plant in partnership with Kinesis Manufacturing Solutions Sdn Bhd at Chennai with vision to support India growing quench to have robust semiconductor manufacturing eco in India by localizing the supply chain to reduce reliance on imports and strengthening the supply chain for critical infrastructure.Kinesis specializes in precision manufacturing and semiconductor fabrication support.
The VCI Global-Kinesis plant will focus on producing semiconductor bonding wires, a crucial component inside the chips. The 25,000-square-foot facility will be located in Chennai, with an initial investment of US$3.5 million. Operations are set to begin in the third quarter of 2025 with a single production line. By reaching mass production within the same quarter, the plant is projected to generate up to US$50 million, resulting in a return on investment (ROI) within 12 months. There are plans to expand to four production lines in the near future, aiming for an annual revenue of approximately US$200 million.
VCI Global shares a market study on India semiconductor material, where India’s semiconductor materials market is forecasted to reach US$8.1 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.22% from 2025 to 2033 as per market researcher IMARC.
This announcement joins some big investment in chip manufacturing eco in India such as Tata Electronics Lam Research, Applied Materials, Crompton Greaves and many more.
“With this strategic venture, VCI Global aims to become a leading supplier in India, providing a critical component for semiconductor packaging and chip manufacturing. Establishing the country’s first semiconductor wire plant secures a high-margin revenue stream and aligns us with the world’s top semiconductor players. As the Indian government drives domestic semiconductor manufacturing and major players expand into the region, we are seizing a rare opportunity to lead a vital niche in the global supply chain,” said Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
