VCI, Kinesis to build semiconductor wire plant in Chennai
The 25,000-square-foot facility will focus on producing semiconductor bonding wires, a crucial component in chip manufacturing.
VCI Global Limited is establishing India’s first semiconductor wire manufacturing plant in partnership with Kinesis Manufacturing Solutions.
The VCI Global-Kinesis plant will focus on producing semiconductor bonding wires, a crucial component in chip manufacturing, according to a media release. The 25,000-square-foot facility will be located in Chennai, with an initial investment of USD 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 USD 50 million, resulting in an ROI within 12 months, VCI said.
There are plans to expand to four production lines in the near future, aiming for an annual revenue of approximately USD 200 million.
As India advances its goal of becoming a global semiconductor powerhouse and aligns its strategies with the Smart Cities Mission, the development of large-scale fabrication and packaging facilities is driving a surge in demand for semiconductor materials. This rising demand is reflected in market projections, with IMARC estimating that India’s semiconductor materials market will reach US$8.1 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.22% from 2025 to 2033.
This joint venture will be majority-owned by VCI Global, with a 51% stake, while Kinesis will hold the remaining 49% stake.
“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,” said Dato’ Victor Hoo, Group Executive Chairman and CEO of VCI Global. “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.”
Headquartered in Kuala Lumpur, Malaysia, VCI Global’s areas of focus include AI & Robotics, fintech, cybersecurity, renewable energy, and capital market consultancy. Kinesis specialises in precision manufacturing and semiconductor fabrication support.