Kelington secures RM413.7mil semiconductor project in India


KUALA LUMPUR: Kelington Group Bhd (KGB) has secured a contract worth RM413.7mil to undertake a semiconductor wafer fabrication facility project in India.

In a filing with Bursa Malaysia, the integrated engineering solutions provider said its wholly owned subsidiary, Kelington Engineering (S) Pte Ltd, had accepted a letter of award (LOA) for a turnkey gas distribution system project at a wafer fabrication facility in Gujarat.

The contract was awarded by a leading semiconductor manufacturer in India and involves the delivery of a comprehensive gas distribution system, which forms part of the project’s mission-critical infrastructure.

The works will commence immediately and are expected to be completed by July 2028.

“The LOA is expected to contribute positively to the earnings and net assets of KGB for the financial years ending Dec 31, 2026 until completion,” KGB said.

Chief executive officer Lim Seng Chuan said that the project is India’s first pure-play semiconductor foundry, supported by strong government funding and backing, including commitments to ensure reliable infrastructure such as power and water supply.

He added that these factors provide a solid foundation for the successful execution and delivery of the project.

“This marks a significant milestone and a breakthrough for the Group as we secure our first major contract in India’s semiconductor sector, positioning the Group at an early stage of a high-growth market with strong long-term opportunities,” Lim said in a separate statement.

Year-to-date, KGB has secured new contracts totalling approximately RM555mil.

Combined with its outstanding order book of RM1.4bil as at Dec 31, 2025, this provides strong earnings visibility for the company in the coming years.

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Kelington , KGB , semiconductor , wafer fabrication , India ,

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