KASFAB Tools Eyes Market Share In $110 Billion Semiconductor Industry

(MENAFN- KNN India) Bengaluru, Feb 10 (KNN) Karnataka-based Semiconductor equipment manufacturer KASFAB Tools, a venture by the KAS Group, has inaugurated its state-of-the-art facility in Bengaluru Rural, aiming to carve out a significant share in the burgeoning USD 110 billion semiconductor industry.

Despite increasing interest from venture capitalists (VCs), the sector has not received due attention from the government, said Manjunath Jyothinagara, Managing Director of KASFAB Tools, in an interaction with Deccan Herald.

"There is a lack of understanding and absence of government involvement, which has prevented the industry from recognizing this massive opportunity," Jyothinagara noted.

While the government acknowledged the role of micro, small, and medium enterprises (MSMEs) in the recent budget by expanding credit guarantees and introducing new schemes, Jyothinagara believes a more cohesive approach is necessary for semiconductor manufacturing.

"We need a platform where all these players can collaborate and meet customer expectations. Other global markets have done this successfully, and we need a similar concentrated effort from the government," he emphasised.

Market reports suggest that the semiconductor manufacturing equipment industry is currently valued at USD 105-110 billion and is projected to surge to USD 250-270 billion by 2032, driven by an 8-10 per cent CAGR.

KASFAB Tools has invested Rs 20 crore in its first phase, with plans to inject Rs 250 crore in the next three to six months.

The company anticipates generating Rs 50 crore in revenue in FY 2025-26, with ambitious projections of reaching Rs 2,500 crore in the next 3-5 years, largely driven by demand from global players.

"The key is the acceptance of our equipment. Once that happens, we will scale quickly," said Jyothinagara, acknowledging that India's semiconductor industry faces a perception challenge.

While India has proven engineering capabilities, core semiconductor manufacturing remains offshore. "It's not about lacking capability but about integrating these capabilities effectively. It's only a matter of time," he concluded.

(KNN Bureau)

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