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Japanese translation

Mitsui to Support the Establishment of Semiconductor Back-end Manufacturing Business by Kaynes of India

Mar. 6, 2026

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) has concluded a strategic business partnership agreement with Kaynes Semicon Private Limited ("Kaynes"), which is engaged in the semiconductor back-end process (OSAT^*) business in India, and AOI Electronics Co., Ltd. ("AOI Electronics", Head Office: Takamatsu City, Kagawa Prefecture, President: Kazuhiro Kinoshita), the largest Japanese OSAT company. India has been promoting the expansion of its manufacturing sector under the "Make in India" policy, and large amounts of government subsidies are flowing into the semiconductor industry. This project has also been approved by the Government of India as an eligible initiative under this framework.

Under this agreement, Mitsui will support Kaynes to start up its OSAT business by leveraging AOI Electronics' expertise in semiconductor back-end process and support sales of products manufactured by Kaynes. Mitsui has acquired the exclusive right to handle raw materials procured by Kaynes from Japanese-affiliated suppliers and suppliers outside of India, and will facilitate collaboration with suppliers within and outside of India to support the launch and stable operation of Kaynes' business. In addition, Mitsui has secured the right to acquire Kaynes' shares in the future and will explore the potential for further strategic involvement.

Given the strategic importance of semiconductors as essential resources, many countries are developing domestic production capacity and restructuring their supply chains. Through its support for Kaynes' business, Mitsui will contribute to the development of a robust and multipolar semiconductor ecosystem on a global scale. As a leading local company associated with its parent company, Kaynes Technology India Limited, which operates EMS (Electronic Manufacturing Service) business, Kaynes obtained government approval to start up an OSAT business in September 2024. It aims to commence operations in the second half of 2026. Through this initiative, Mitsui will support the growth of Kaynes' business and contribute to the sustainable development of the Indian semiconductor industry, local job creation in India, and the establishment of foundations for the digital society.

*An abbreviation for Outsourced Semiconductor Assembly and Test

Company Profile

Official name	Kaynes Semicon Private Limited
Head Office Location	Sanand, Gujarat, India
Established	April 2023
Representative	Raghu Panicker (CEO)
Number of employees	133 (as of February 2026)
Business Activities	Semiconductor Back-end Process Business
Website	https://kaynessemicon.com/(Under maintenance)
Others	100% subsidiary of Kaynes Technology India Limited (listed in BSE and NSE)

Official name	AOI ELECTRONICS CO., LTD.
Head Office Location	455-1. Kohzai Minamimachi, Takamatsu, Kagawa, Japan
Established	February 1969
Representative	Kazuhiro Kinoshita (President)
Number of employees	1,547 (as of March 2025)
Business Activities	Semiconductor Back-end Process Business
Website	https://www.aoi-electronics.co.jp/en/

Aerial view of Kaynes' semiconductor back-end plant under construction

Illustrative diagram of semiconductor back-end process

Mitsui’s Materiality

“Build brighter futures, everywhere” as our corporate mission, and to gain the trust and expectations of our stakeholders to realize a better tomorrow for earth and for people around the world, we have identified six material issues (“Materiality”) for Mitsui’s sustainable growth. We anticipate this particular project/ business to contribute especially to the realization of “Establish a foundation for sustainable and stable supply” and “Empower our people to build brighter futures”