VCI Global, Kinesis to Build India’s First Semiconductor Wire Plant Worth USD 3.5 Million

The VCI Global-Kinesis plant, spread in an area of 25,000 square feet in Chennai, will focus on producing semiconductor bonding wires, a crucial component in chip manufacturing. Operations are set to begin in the third quarter of 2025 with a single production line. 

Mar 11, 2025

Accelerating India’s semiconductor transformation and solidifying its position in the industry’s supply chain, two Malaysian companies – VCI Global Limited and Kinesis Manufacturing Solutions Sdn Bhd, are establishing India’s first semiconductor wire manufacturing plant worth USD 3.5 million. 

The strategic initiative aligns with and supports the Indian government’s effort to build a self-sustained semiconductor ecosystem.

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Spread over an area of 25,000 square feet in Chennai, the VCI Global-Kinesis plant will focus on producing semiconductor bonding wires, a crucial component in chip manufacturing. 

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 USD 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 USD 200 million.

This joint venture will be majority-owned by VCI Global, with a 51 percent stake, while Kinesis will hold the remaining 49 percent stake. 

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“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 Chief Executive Officer of VCI Global.