VCI Global, Kinesis to house India’s first semiconductor wire plant in Chennai

KUALA LUMPUR: VCI Global Limited is establishing India’s first semiconductor wire manufacturing plant in partnership with Kinesis Manufacturing Solutions Sdn Bhd in Chennai at an initial investment of $3.5 million.

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. By reaching mass production within the same quarter, the plant is projected to generate up to $50 million, resulting in a return on investment 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.

As India advances its goal of becoming a global semiconductor powerhouse and aligns its strategies with the Smart Cities Mission, the development of large-scale fabrication and packaging facilities is driving a surge in demand for semiconductor materials.

This rising demand is reflected in market projections, with IMARC estimating that India’s semiconductor materials market will reach $8.1 billion by 2033, growing at a compound annual growth rate of 5.22 per cent from 2025 to 2033. This growth is further fuelled by foreign direct investment and government incentives promoting supply chain localisation.

India’s first semiconductor wire plant is aiemd at reducing reliance on imports and strengthening the supply chain for critical infrastructure.

This 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 Loh Beng Siew, a key member of the Kinesis team.

“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. As the Indian government drives domestic semiconductor manufacturing and major players expand into the region, we are seizing a rare opportunity to lead a vital niche in the global supply chain,” said Dato’ Victor Hoo, Group executive chairman and CEO, VCI Global.