<p>Bengaluru: <a href="https://www.deccanherald.com/tags/karnataka">Karnataka</a>-based semiconductor equipment manufacturer KASFAB Tools, a venture by the KAS Group recently launched its state-of-the-art facility in Bengaluru rural, eyeing a market share in the $110 billion industry. </p><p>While this sector has seen interest from venture capitalists (VCs), the government has never looked into it, Managing Director Manjunath Jyothinagara told <em>DH</em> in an interaction. </p>.<p>"Because there is a lack of understanding and an absence of government, even the industry has not yet jumped on this big opportunity sector," he added.</p>.Japanese ambassador visits Tata semiconductor plant site in Assam.<p>Although the government did not fail to acknowledge the micro, medium and small enterprises' (MSMEs) role in the recently announced budget by increasing the credit guarantee and introducing more schemes, Jyothinagara believes that for the semiconductor manufacturing sector it is important to bring all these players to one platform. </p>.<p>“It's a question of aggregating all those players on a platform where they are able to meet the varied standards of expectations of customers and this needs a concentrated effort from the government because obviously scattered players cannot do it. Other markets have done it to enable the collaboration between the customer and such MSME players,” he observed. </p>.<p>According to recent market reports, the global market for semiconductor manufacturing equipment is currently valued at around $105-110 billion and is projected to reach $250-270 billion by 2032, growing at a compound annual growth rate (CAGR) of around 8-10 per cent due to increasing demand for advanced semiconductors across industries. </p>.<p>In its first phase, the company invested Rs 20 crore, however, going ahead the second expansion phase will see Rs 250 crore, in about three to six months. While the semiconductor player is projecting a revenue of about Rs 50 crore for fiscal year 2025-26, it has ambitions to generate Rs 2,500 crore in revenue in the next 3-5 years riding on high demand from players in this industry, especially outside India. </p>.<p>“Depending on how this initial contract goes through and acceptance of these equipment, following which we will expand quickly,” said Jyothinagara. </p>.<p>He also pointed out a perception challenge when it comes to the semiconductor manufacturing industry in India due to its novelty. While several companies have their back-end engineering centres of excellence in India, the key manufacturing is done in other countries.</p><p> “It's not that we are devoid of capabilities, it's about making sure all our capabilities are well integrated to deliver the final product and that discipline is something which we have to work through. So, I'm sure it's a question of time,” he highlighted.</p>
<p>Bengaluru: <a href="https://www.deccanherald.com/tags/karnataka">Karnataka</a>-based semiconductor equipment manufacturer KASFAB Tools, a venture by the KAS Group recently launched its state-of-the-art facility in Bengaluru rural, eyeing a market share in the $110 billion industry. </p><p>While this sector has seen interest from venture capitalists (VCs), the government has never looked into it, Managing Director Manjunath Jyothinagara told <em>DH</em> in an interaction. </p>.<p>"Because there is a lack of understanding and an absence of government, even the industry has not yet jumped on this big opportunity sector," he added.</p>.Japanese ambassador visits Tata semiconductor plant site in Assam.<p>Although the government did not fail to acknowledge the micro, medium and small enterprises' (MSMEs) role in the recently announced budget by increasing the credit guarantee and introducing more schemes, Jyothinagara believes that for the semiconductor manufacturing sector it is important to bring all these players to one platform. </p>.<p>“It's a question of aggregating all those players on a platform where they are able to meet the varied standards of expectations of customers and this needs a concentrated effort from the government because obviously scattered players cannot do it. Other markets have done it to enable the collaboration between the customer and such MSME players,” he observed. </p>.<p>According to recent market reports, the global market for semiconductor manufacturing equipment is currently valued at around $105-110 billion and is projected to reach $250-270 billion by 2032, growing at a compound annual growth rate (CAGR) of around 8-10 per cent due to increasing demand for advanced semiconductors across industries. </p>.<p>In its first phase, the company invested Rs 20 crore, however, going ahead the second expansion phase will see Rs 250 crore, in about three to six months. While the semiconductor player is projecting a revenue of about Rs 50 crore for fiscal year 2025-26, it has ambitions to generate Rs 2,500 crore in revenue in the next 3-5 years riding on high demand from players in this industry, especially outside India. </p>.<p>“Depending on how this initial contract goes through and acceptance of these equipment, following which we will expand quickly,” said Jyothinagara. </p>.<p>He also pointed out a perception challenge when it comes to the semiconductor manufacturing industry in India due to its novelty. While several companies have their back-end engineering centres of excellence in India, the key manufacturing is done in other countries.</p><p> “It's not that we are devoid of capabilities, it's about making sure all our capabilities are well integrated to deliver the final product and that discipline is something which we have to work through. So, I'm sure it's a question of time,” he highlighted.</p>