YES Pioneers Semiconductor Equipment Production in India
Yield Engineering Systems, Inc. (YES), a global leader in materials and interface engineering equipment solutions, has taken a significant step forward in India’s growing semiconductor industry. The company proudly announced the shipment of the first commercial VeroTherm Formic Acid Reflow tool from its state-of-the-art manufacturing facility in Sulur, Coimbatore. This milestone marks a crucial advancement for India’s semiconductor ecosystem, as it signifies the first equipment produced in the country for advanced semiconductor applications, particularly High Bandwidth Memory (HBM), which plays a critical role in AI and High-Performance Computing (HPC) technologies worldwide.
Establishing a Milestone in Indian Semiconductor Manufacturing
The shipment of this groundbreaking tool to a leading global semiconductor manufacturer underscores YES’s commitment to innovation and quality. The newly operational facility, which commenced operations in September 2024, is strategically located at 96/3 Vadakku Sambala Thottam, Trichy Road, Kannampalayam, Sulur Taluk. This advanced manufacturing unit is a crucial element of YES’s global expansion strategy, designed to cater to both domestic and international customers with enhanced efficiency and responsiveness.
With more than four decades of expertise in semiconductor, display, and life sciences processing equipment, YES has solidified its reputation as a pioneer in cutting-edge technology solutions. The Sulur facility is equipped with advanced manufacturing and testing capabilities to meet the growing demand for YES’s innovative products. Among the flagship technologies produced at this plant are VertaCure™, Verotherm™, and VeroFlex™ systems, which are widely used in advanced wafer and panel-level packaging applications. By manufacturing these solutions in India, YES is contributing to the country’s ambition of becoming a key player in the global semiconductor industry.
Strengthening the Local Supply Chain and Workforce
In line with its commitment to fostering a robust semiconductor ecosystem in India, YES is actively developing a strong local supply chain. By sourcing raw materials and components from domestic suppliers, the company is not only enhancing the reliability of its production processes but also significantly reducing dependency on imports. This initiative aligns with the Indian government’s vision of self-reliance and technological advancement in semiconductor manufacturing.
Furthermore, the establishment of this facility has created numerous employment opportunities for skilled professionals in the region. YES is focused on hiring and training local talent to ensure that India develops a highly competent workforce capable of driving innovation in semiconductor manufacturing. By collaborating with educational institutions and technical training centers, the company aims to equip engineers and technicians with the skills needed to meet the industry’s evolving demands.
Government Support and Policy Initiatives
Recognizing the significance of this achievement, key government officials have expressed their strong support for YES’s initiatives. S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MEITy), emphasized the importance of this development, stating:
“The commencement of shipments from the YES manufacturing facility in Tamil Nadu marks a remarkable advancement for India’s semiconductor industry. This initiative aligns perfectly with our national vision of building a self-reliant and robust semiconductor ecosystem. We are committed to providing all necessary support to foster further growth and innovation in this sector, thereby bolstering India’s position in the global semiconductor market.”
The Tamil Nadu government has also played a crucial role in facilitating semiconductor investments in the state. The Minister for Industries, T.R.B. Rajaa, highlighted the broader impact of YES’s milestone, linking it to the proactive measures taken by the state government:
“We are immensely happy that the first semiconductor equipment from the YES Sulur facility has been successfully shipped. This is yet another success of Honourable Chief Minister Thiru MK Stalin’s US trip last year, and the Tamil Nadu Semiconductor and Advanced Electronics Policy. This government delivers not just with investment commitments and policies, but with grounding investments and converting them into jobs. Despite global and national challenges, Tamil Nadu remains steadfast in its mission to be a global semiconductor hub, and that’s why in the TN Budget 2025 the state has announced semiconductor manufacturing parks in Sulur and Palladam under a new ₹500-crore Semiconductor Mission.”
YES’s Vision for India’s Semiconductor Ecosystem
As a leader in semiconductor equipment manufacturing, YES is fully dedicated to strengthening India’s capabilities in the global semiconductor supply chain. By integrating its Sulur facility into its global manufacturing network, the company is ensuring seamless coordination with its other production sites worldwide. This integration guarantees that customers continue to receive high-quality, reliable semiconductor processing equipment, tailored to their specific needs.
Ramakanth Alapati, Chairman and CEO of YES, reaffirmed the company’s commitment to India’s semiconductor future:
“This milestone of the first shipment from the Sulur facility underscores our unwavering commitment to strengthening the India semiconductor ecosystem, which will enable the efficient delivery of our products to customers in India and beyond. This facility is fully integrated with our global manufacturing network, allowing us to consistently provide the reliability and technical expertise that our customers expect.”
The establishment of this facility not only enhances YES’s production capabilities but also serves as a model for other semiconductor equipment manufacturers looking to set up operations in India. By leveraging India’s growing talent pool, favorable policies, and increasing domestic demand, YES is demonstrating how global semiconductor leaders can successfully contribute to India’s technological advancement.
The Future of Semiconductor Manufacturing in India
India’s semiconductor industry is at a turning point, with increasing investments from both domestic and international players. The country’s push for self-reliance in semiconductor production is backed by government initiatives such as the Production-Linked Incentive (PLI) scheme, the Design-Linked Incentive (DLI) scheme, and the establishment of semiconductor manufacturing clusters. The Tamil Nadu government’s announcement of semiconductor parks in Sulur and Palladam further highlights the region’s potential to emerge as a global semiconductor hub.
As more companies follow in the footsteps of YES, India’s semiconductor ecosystem is expected to witness exponential growth in the coming years. The success of YES’s Sulur facility serves as a testament to India’s readiness to take on the challenges of semiconductor manufacturing at a global scale. The country’s commitment to fostering innovation, coupled with robust policy support and industry collaboration, will play a vital role in shaping the future of semiconductor manufacturing in India.
The shipment of the first commercial VeroTherm Formic Acid Reflow tool from YES’s Sulur facility marks a major milestone in India’s semiconductor journey. By pioneering advanced semiconductor equipment manufacturing in the country, YES is contributing to the development of a self-sufficient semiconductor ecosystem while reinforcing India’s position in the global market. With continued investments, government support, and industry collaboration, India is poised to become a leading force in semiconductor technology, driving innovations that will shape the future of AI, HPC, and beyond.
