Mitsui Signs Strategic Partnership Agreement with Kaynes Semicon and AOI Electronics for Semiconductor OSAT Operations in India

Mitsui has entered into a strategic business partnership agreement with Kaynes Semicon Private Limited and AOI Electronics. The agreement coincides with India's "Make in India" policy, which supports expansion of the manufacturing sector, including the allocation of substantial government subsidies to the semiconductor industry. The project has received approval from the Government of India as an eligible initiative under this policy framework.

Under the terms of the agreement, Mitsui will assist Kaynes in initiating its OSAT business by drawing on AOI Electronics' expertise in semiconductor back-end processes and by supporting the sales of products manufactured by Kaynes. Mitsui has obtained the exclusive right to handle raw materials that Kaynes procures from Japanese-affiliated suppliers and from suppliers located outside India. Mitsui will also facilitate collaboration with suppliers both within and outside India to support the launch and stable operation of Kaynes' business.

Mitsui has additionally secured the right to acquire shares in Kaynes in the future and will evaluate options for further strategic involvement.

Kaynes received government approval to commence its OSAT business in September 2024. The company aim...