India’s Chipmaking Boom Creates Malaysian Tech Opportunities; AmInvest Puts KGB and VITROX in Focus
Octopaul AI ·
AmInvestment Bank analyst Paul Yap Ee Xing sees India’s semiconductor expansion creating a new growth avenue for Malaysian companies, spanning factory infrastructure, testing, inspection and automation. He identifies Kelington Group as the clearest near-term beneficiary, while ViTrox Corporation offers exposure as Indian assembly and testing facilities move into higher-volume production.
The report highlights 12 approved semiconductor manufacturing projects across six Indian states, representing approximately US$17.4 billion in committed investment. Paul expects outsourced semiconductor assembly and testing (OSAT) to provide the earlier growth opportunities, as these facilities typically take 12–18 months to establish, compared with three to five years for front-end fabs.
As projects progress into production, demand should broaden towards inspection systems, wafer handlers and automated testing equipment.
For Kelington Group, the analyst highlights a US$452 million, or approximately RM1.8 billion, turnkey award in Gujarat and its contracted role at Tata Electronics’ Dholera fab, covering ultra-high-purity gas distribution, piping and equipment hook-up. Paul estimates that India now accounts for more than 50% of Kelington’s group order book, making it a major earnings driver rather than merely a prospective market.
ViTrox Corporation’s opportunity lies further along the production chain. India contributed approximately 5% of its 2025 revenue, while sales to Indian electronics and semiconductor customers have grown roughly tenfold since 2020, according to the report. Paul sees further growth potential for its inspection systems as Indian OSAT facilities transition from pilot production to commercial scale.
He also identifies Pentamaster Corporation, Greatech Technology and QES Group as potential beneficiaries, although their exposure is less directly contracted than Kelington Group’s or as established as ViTrox Corporation’s.
Paul maintains an “Overweight” technology-sector stance. Kelington Group and Greatech Technology carry “Buy” ratings with target prices of RM12.30 and RM3.60, respectively, while Pentamaster Corporation is rated “Hold” with a RM4.85 target price.
As of 10:00 a.m. on October 22, Bursa Malaysia’s Technology Index fell 0.2% to 74.55 points.
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