Kaynes Semicon, L&T arm to acquire Fujitsu General's power modules business
Kaynes Semicon
and L&T Semiconductor Technologies (LTSCT) are acquiring Japanese
Fujitsu General
's
power modules business
for Rs 118.34 crore.
Fujitsu will transfer the business to Larsen & Toubro's fabless chip company and related production facilities to Kaynes, which will in turn manufacture these products for LTSCT, the companies said.
The transaction is expected to close on June 23, pending regulatory clearance under Japan's Foreign Exchange and Foreign Trade Act.
'The new
OSAT facility
being setup in Sanand, Gujarat, is launching its operations with a focus on the global power device packaging market,' Raghu Panicker, chief executive of Kaynes Semicon, told ET.
Mysuru-based Kaynes is one of the production contractors for LTSCT. The LTSCT specialises in semiconductor product development, manufacturing, and sales. Kaynes is one of the four companies under the India Semiconductor Mission 1.0 building OSATs in the country.
Live Events
The deal is part of Fujitsu's strategy to streamline operations within its tech solution business and reinforce its overall business foundation.
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
Panicker said the deal is supported by two major initiatives: a multi-million-dollar, high-volume service agreement with its customer Alpha and Omega Semiconductor (AOS) and the acquisition of three power packaging lines from Fujitsu Electronics Ltd Japan.
'The partnership with AOS will cover core power devices like IGBTs, power modules and MOSFETs with volumes projected to reach nearly 670 million units annually, while the Fujitsu technology provides immediate capability for high-reliability automotive and industrial-grade power modules, adding a production capacity of approximately 0.6 million units per month,' he said.
These moves position the company as a significant new player in the
power electronics supply chain
, Panicker said.
By combining a foundational, high-volume customer with advanced packaging technology and immediate production capacity, the company is poised to meet the surging global demand for power semiconductors driven by the
electric vehicles
,
renewable energy
, and industrial automation sectors, he said.
This establishes a vital new capability in India's domestic semiconductor ecosystem and addresses the global need for a more resilient and diverse manufacturing footprint for power devices.
L&T has invested more than $300 million to create LTSCT.
Fujitsu General, in a regulatory filing on Monday, announced the divestiture of its power module business operated by its consolidated subsidiary, Fujitsu General Electronics (FGEL).
This transaction is expected to result in the recording of an extraordinary gain of approximately 2 billion yen (about $13.8 million) from the business transfer in the April-June 2025 quarter, it said.
Reasons for the Divestiture
FGEL's tech solutions division is involved in the development, manufacturing, and sale of electronic devices, as well as the manufacturing of information and communication equipment. The divestiture of the power module business is part of a broader portfolio transformation within the electronic device business, aimed at strengthening the Fujitsu General Group's business foundation, it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
30 minutes ago
- Time of India
Summons sent to lawyer for his role as co's ind dir: ED
Representative Image NEW DELHI: Faced with criticism, Enforcement Directorate Friday said it issued summons to senior advocate Pratap Venugopal as part of its ongoing investigation against Care Health Insurance Ltd (CHIL) in which Venugopal was an independent director. ED's Mumbai zonal office is conducting a money laundering investigation in which it has been alleged that shares of CHIL were issued at a much lower price in the form of ESOPs on May 1, 2022, in spite of the rejection of the same by Insurance Regulatory and Development Authority of India (IRDAI). "As part of the investigation, summons was issued to Pratap Venugopal, an independent director of CHIL, to understand the circumstances under which the company has issued ESOPs despite its rejection by IRDAI and subsequent discussions in the board of CHIL in this regard," the agency said about the summons which it withdrew after protests by lawyers' bodies. In a statement, the agency emphasised that IRDAI on July 23, 2024, had directed CHIL to revoke or cancel any ESOPs that were yet to be allotted and had also imposed a penalty of Rs 1 crore on CHIL for non-compliance with regulatory directions. "In view of the fact that Pratap Venugopal is a senior advocate in Supreme Court, the summons issued to him has been withdrawn and the same has been communicated to him," the agency said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo In the said communication, it was also stated that if any documents were required from him in his capacity as an independent director of CHIL, the same would be requested to be submitted by email, the agency added. Further, ED has asked its units not to issue summons to lawyers, saying summoning them would be violative of Section 132 of Bhartiya Sakshya Adhiniyam, 2023. "If any summons needs to be issued under the exceptions carved out in proviso to Section 132 of Bhartiya Sakshya Adhiniyam, 2023, the same shall be issued only with the prior approval of the director, ED," the agency said.
Time of India
35 minutes ago
- Time of India
DHL shuts down across Canada as 2,100 workers strike and new anti-scab law triggers chaos
DHL Express Canada suspended operations nationwide on Friday(June 20), halting thousands of parcel deliveries and disrupting major supply chains, as a labor strike coincided with the introduction of new federal legislation banning the use of replacement workers. The shutdown follows nearly two weeks of stalled contract negotiations between DHL and Unifor , Canada's largest private-sector union. The standoff escalated on June 8 when the company locked out 2,100 unionized workers, including truck drivers, clerks, and warehouse staff, across Ontario, British Columbia, and Quebec. In response, Unifor launched a strike, citing unfair labor practices and insufficient wage proposals. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Luxury 2, 3, 4 & 4.5 Bed Homes in South Mumbai at Piramal Mahalaxmi | South Tower Ready to Move In Piramal Mahalaxmi Learn More Undo New 'anti-scab' legislation Friday's operations freeze coincides with the federal government 's new 'anti-scab' legislation (Bill C-58), which officially came into effect the same day. The law prohibits federally regulated companies, like DHL, from hiring replacement workers during strikes or lockouts, a long-standing demand from organized labor. Live Events DHL, a German-based logistics giant with about 50,000 Canadian customers, including Lululemon, Shein, and Siemens , had continued partial operations using temporary hires during the initial days of the dispute. But as the law loomed, the company began winding down services earlier this week. 'DHL has shut down operations nationally,' Unifor said in a statement Friday morning. 'This is the real-world impact of corporate refusal to bargain fairly, and a significant test of Canada's new labor protections.' Union President Lana Payne accused the company of undermining workers by legally using replacement labor before June 21, a tactic she says damaged trust and bargaining momentum. DHL has not denied the use of replacement workers. The dispute stems from Unifor's demand for a 22 percent wage increase over three years and stronger protections for owner-operator drivers who face rising costs for fuel, vehicles, and insurance. DHL has proposed a 15 percent increase over five years, alongside limited bonuses and pension improvements. Jobs Minister Patty Hajdu confirmed she met with both parties on Wednesday after DHL formally requested government intervention to restore operations. So far, Ottawa has not indicated it will step in. In the meantime, shipments remain frozen in DHL facilities, and businesses are scrambling to switch to alternate carriers like FedEx and Purolator.
Hans India
43 minutes ago
- Hans India
Cognizant to build IT campus in Vizag, generate 8,000 jobs
Visakhapatnam: In a significant development for Andhra Pradesh's IT ecosystem, Cognizant Technology Solutions is all set to establish a world-class IT/ITES campus in Visakhapatnam with an investment of Rs.1,582.98 crore. Providing the much-needed relief to unemployed youth, the project is expected to generate 8,000 jobs over the next few years. In connection with it, Cognizant sought 21.31 acres of land at Kapuluppada and the state government would allot the Visakhapatnam Metropolitan Region Development Authority land for a nominal rate of just 99 paisa. In a move which is considered another major endeavour for Visakhapatnam as an emerging hub for IT investments, setting up IT/ITES campus is in alignment with IT minister Nara Lokesh's vision to draw investments and develop IT across Andhra Pradesh. The company has set a target of March 2029 for the commencement of its commercial operations. With the entire project being 100 per cent self-funded, Cognizant's expansion into Visakhapatnam reinforces its long-term commitment to Andhra Pradesh that further cements the state's reputation as a future IT hub. Welcoming the move, government whip P G V R Naidu (Ganababu) expressed gratitude to IT minister Nara Lokesh for bringing multinational companies to Visakhapatnam. 'The IT minister kept up his promise made to IT employees. It is a commendable initiative to create employment for 8,000 people with an investment of Rs.1,582 crore. With this, the long-cherished dream of Vizagites is going to become a reality soon,' he posted on the 'X' (formerly Twitter).
