Kaynes SemiCon, a fully owned subsidiary of Kaynes Technology India, has emphasized the value of legacy semiconductor packages in driving the country's manufacturing goals.
In a recent interview with DIGITIMES Asia, Raghu Panicker, CEO of Kaynes SemiCon, highlighted the enduring importance of mature nodes in sectors such as consumer electronics, automotive, and industrial applications, even as the industry advances toward next-generation semiconductor technologies.
"While advanced nodes are essential for cutting-edge innovations, legacy semiconductor nodes remain indispensable for a wide range of applications," Panicker said. "They meet the cost, reliability, and scalability requirements of industries that form the backbone of India's economy."
These mature chips also play a key role in fields such as aerospace, home appliances, broadband, factory automation, defense systems, and medical devices.
Rising demand across these sectors underscores their significance. In the automotive industry, for example, the global market for semiconductors is expected to grow from US$38.7 billion in 2020 to US$116.6 billion by 2030, representing a compound annual growth rate of 11.7%, according to a note from the Center for Strategic and International Studies (CSIS).
Mature nodes drive cost-effective solutions
India's nascent semiconductor industry is expected to lean heavily on legacy nodes, offering a cost-effective and practical solution compared to advanced technologies dominating global hubs like Taiwan and South Korea.
Panicker noted that these mature technologies align with the country's manufacturing priorities, emphasizing affordability and scalability.
"Legacy nodes provide manufacturers with a reliable and proven technology platform," Panicker explained. "This is particularly important in a price-sensitive market like India, where electronics manufacturers need solutions that deliver consistent performance without excessive costs."
Strategic value in key industries
Panicker highlighted that legacy nodes are not just a temporary solution but a strategic asset for industries like automotive and industrial electronics, which prioritize durability and reliability over cutting-edge capabilities.
"As India builds its semiconductor ecosystem, legacy nodes will play a vital role in bridging the gap between immediate manufacturing needs and future advancements," Panicker added.
Balancing legacy and advanced technologies
Kaynes SemiCon, specializing in packaging operations (OSAT), aims to combine legacy and advanced nodes to address the varied needs of industries.
The company emphasizes a dual strategy to balance immediate cost-sensitive demands with the adoption of advanced packaging technologies like 2.5D and 3D ICs.
"Our strategy is to utilize legacy nodes for cost-efficient applications while aligning with the industry's transition toward advanced packaging," said Panicker. He added that this approach enables the company to support India's growing semiconductor ecosystem under initiatives such as 'Make in India.'
Panicker also highlighted that legacy nodes provide a reliable foundation for current manufacturing requirements, while investments in advanced technologies are essential to meet future market demands.
"India's semiconductor growth depends on striking the right balance - leveraging legacy technologies for stability while building capacity for advanced solutions," Panicker said.
Building self-reliance
Kaynes emphasizes the strategic importance of localizing semiconductor manufacturing to reduce dependency on global supply chains.
The CEO noted that legacy nodes are key to building a self-reliant electronics manufacturing ecosystem in India.
"India has the opportunity to create a robust semiconductor ecosystem by capitalizing on legacy technologies, which are well-aligned with our current manufacturing strengths and market needs," Panicker concluded.
Kaynes SemiCon's focus on legacy nodes, combined with its integration capabilities, positions it to play a pivotal role in India's semiconductor manufacturing journey, contributing to the country's ambitions of becoming a global electronics hub.