VCI Global, a company listed on Nasdaq and based in Malaysia, has announced plans to establish India’s inaugural semiconductor wire manufacturing facility in collaboration with Kinesis Manufacturing Solutions. This innovative venture will focus on the production of semiconductor bonding wires, which play a vital role in the chip manufacturing process.
The new facility, spanning 25,000 square feet, will be located in Chennai and is set to begin operations in the third quarter of 2025, with an initial investment of $3.5 million directed towards launching a single production line. In this joint endeavor, VCI Global will hold a 51% majority stake, while Kinesis Manufacturing Solutions will control the remaining 49%. The initiative will be spearheaded by Mr. Loh Beng Siew, an influential member of the Kinesis team who previously established the first factory for Ultra Clean Technology (NASDAQ: UCTT) in Malaysia.
According to VCI Global, the plant is expected to reach mass production within its inaugural quarter, potentially generating revenues of up to $50 million and providing a return on investment (ROI) within just 12 months. There are aspirations for future expansion, with plans to increase to four production lines and aim for annual revenues of around $200 million.
“Through this strategic partnership, VCI Global seeks to position itself as a leading supplier in India, delivering essential components for semiconductor packaging and chip manufacturing. The establishment of the country’s first semiconductor wire plant not only secures a high-margin revenue stream but also aligns us with the global leaders in the semiconductor industry,” stated Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global.
