Nasdaq-listed and Malaysia-headquartered VCI Global has announced that it 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. The 25,000-square-foot facility will be located in Chennai with an initial investment of $3.5 million. Operations are set to begin in the third quarter of 2025 with a single production line.
The joint venture will be majority-owned by VCI Global, with a 51 per cent stake, while Kinesis will hold the remaining 49 per cent stake. The venture will be led by Mr. Loh Beng Siew, a key member of the Kinesis team, who previously established Ultra Clean Technology’s (NASDAQ: UCTT) first factory in Malaysia.
“By reaching mass production within the same quarter, the plant is projected to generate up to $50 million, resulting in a return on investment (ROI) within 12 months. There are plans to expand to four production lines in the near future, aiming for an annual revenue of approximately $200 million,” VCI Global said in a statement.
“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,” Dato’ Victor Hoo, Group Executive Chairman and Chief Executive Officer of VCI Global, said.