India’s government has approved $360 million in subsides for Japan’s Mitsui & Co and Aoi Electronics to set up a chip assembly facility with local partner Kaynes Semicon.
The three companies recently sealed a strategic business partnership deal.
In a statement, Mitsui explained it acquired the exclusive right to handle raw materials procured by Kaynes from Japanese-affiliated suppliers and will work with them to support the new business.
Kaynes obtained government approval in September 2024 to set up the business in Sanand, Gujarat and aims to start operations in the second half of 2026.
Under the Semicon India Programme, the government earmarked INR760 billion ($8.2 billion) in support for the development of semiconductor and display manufacturing ecosystems in the country.
It has approved ten projects with total planned investment of around INR1.6 trillion, which includes two fabrication and eight packaging plants.
Mitsui stated Aoi Electronics is the largest semiconductor back-end process company in Japan.
Source: Mobile World Live
Image Credit: Stock Image
