Kaynes Semicon, L&T arm to acquire Fujitsu General’s power modules business

Fujitsu will switch the enterprise to Larsen & Toubro’s fabless chip firm and associated manufacturing amenities to Kaynes, which is able to in flip manufacture these merchandise for LTSCT, the businesses stated.

The transaction is predicted to shut on June 23, pending regulatory clearance underneath Japan’s International Change and International Commerce Act.

“The brand new OSAT facility being setup in Sanand, Gujarat, is launching its operations with a concentrate on the worldwide energy gadget packaging market,” Raghu Panicker, chief government of Kaynes Semicon, instructed ET.

Mysuru-based Kaynes is among the manufacturing contractors for LTSCT. The LTSCT specialises in semiconductor product growth, manufacturing, and gross sales. Kaynes is among the 4 corporations underneath the India Semiconductor Mission 1.0 constructing OSATs within the nation.

The deal is a part of Fujitsu’s technique to streamline operations inside its tech resolution enterprise and reinforce its general enterprise basis.

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Panicker stated the deal is supported by two main initiatives: a multi-million-dollar, high-volume service settlement with its buyer Alpha and Omega Semiconductor (AOS) and the acquisition of three energy packaging strains from Fujitsu Electronics Ltd Japan.“The partnership with AOS will cowl core energy units like IGBTs, energy modules and MOSFETs with volumes projected to achieve almost 670 million items yearly, whereas the Fujitsu expertise supplies instant functionality for high-reliability automotive and industrial-grade energy modules, including a manufacturing capability of roughly 0.6 million items per thirty days,” he stated.

These strikes place the corporate as a major new participant within the power electronics supply chain, Panicker stated.

By combining a foundational, high-volume buyer with superior packaging expertise and instant manufacturing capability, the corporate is poised to satisfy the surging world demand for energy semiconductors pushed by the electric vehicles, renewable energy, and industrial automation sectors, he stated.

This establishes an important new functionality in India’s home semiconductor ecosystem and addresses the worldwide want for a extra resilient and numerous manufacturing footprint for energy units.

L&T has invested greater than $300 million to create LTSCT.

Fujitsu Basic, in a regulatory submitting on Monday, introduced the divestiture of its energy module enterprise operated by its consolidated subsidiary, Fujitsu Basic Electronics (FGEL).

This transaction is predicted to outcome within the recording of a rare acquire of roughly 2 billion yen (about $13.8 million) from the enterprise switch within the April-June 2025 quarter, it stated.

Causes for the Divestiture

FGEL’s tech options division is concerned within the growth, manufacturing, and sale of digital units, in addition to the manufacturing of knowledge and communication gear. The divestiture of the facility module enterprise is a part of a broader portfolio transformation inside the digital gadget enterprise, aimed toward strengthening the Fujitsu Basic Group’s enterprise basis, it stated.