India’s first manufacturing & building facility for semiconductor equipment for global customers

Today, KASFAB Tools Private Limited (A KAS group company under UHP Technologies & KASTECH Equipment) launched India’s first manufacturing and building facility dedicated to building semiconductor equipment for global customers.

The KAS Group will invest significantly in KASFAB Tools Private Limited, the newly formed company, beginning with INR 20 crore in its initial phase, followed by an additional INR 250 crore in the subsequent expansion phase. This strategic move aims to tap into a global market valued at US$25 B, with the Indian semiconductor ecosystem poised to reach INR 2500 crore within the next 3 to 5 years. Projections for FY 2025-26 forecast INR 50 crore in revenue, with expectations for exponential growth in the coming years as the company continues to scale.

“This world-class facility represents a pivotal step in strengthening India’s semiconductor ecosystem,” said Manjunath Jyothinagara, Managing Director, KASFAB Tools Pvt. Ltd. “By providing advanced manufacturing capabilities, we are not only supporting global customers but also positioning Karnataka as a leading hub for innovation and high-tech engineering. This initiative will generate employment, attract significant investments, and accelerate India’s ambitions to become a global leader in semiconductor manufacturing.

“As global semiconductor equipment makers look to diversify their supply chains, India offers a compelling opportunity for contract manufacturing. The country’s talent pool and engineering ecosystem will drive MSMEs to embrace this path with greater confidence, and we anticipate a growing number of players will be motivated to join in building a vibrant, local semiconductor ecosystem.” — Manjunath Jyothinagara, Managing Director, KASFAB Tools Pvt. Ltd.

“With first-of-its-kind infrastructure in India, capable of supporting industry giants we look forward to collaborate with players like Applied Materials, LAM Research, Tokyo Electron, Yield Engineering Systems and likes of them. As global semiconductor equipment makers look to diversify their supply chains, India offers a compelling opportunity for contract manufacturing. The country’s talent pool and engineering ecosystem will drive MSMEs to embrace this path with greater confidence, and we anticipate a growing number of players will be motivated to join in building a vibrant, local semiconductor ecosystem.”

The facility also houses independent test and validation tools, a safety simulation bench, and functional testing capabilities, ensuring compliance with the highest global standards. The facility sprawled across 20,000 sq.ft on the outskirts of Bangalore, has been developed after extensive benchmarking of similar setups in the US, Japan, South Korea, Malaysia, and China, making it one of the most advanced facilities of its kind in India.

The new facility is designed to cater to the demands of leading global customers, including Applied Materials, LAM Research, Tokyo Electron and Yield Engineering Systems, among others. It is equipped with cutting-edge infrastructure, including Class 10 and Class 100 cleanrooms, high-precision welding for plastics and metals, component fabrication, and ultrasound-aided cleaning with deionized (DI) water.