Yield Engineering Systems Ships First India-Made Semiconductor Manufacturing Equipment from Coimbatore.

Yield Engineering Systems, Inc. (YES), a materials and engineering equipment solutions provider, announced on Thursday that it has become the first company to ship a key semiconductor manufacturing tool from India. The VeroTherm Formic Acid Reflow tool, essential for advanced semiconductor applications, was shipped from YES’s Sulur, Coimbatore facility to a leading global semiconductor manufacturer.

The equipment plays a critical role in the semiconductor fabrication process by enabling 3D stacking of memory and logic chips, a technology crucial for high-performance AI accelerators driven by large language model (LLM) applications. It is one of the capital tools used in semiconductor fabrication facilities (fabs) and facilitates the soldering of wafers into beads within a controlled gas chamber environment.

YES, headquartered in Fremont, California, began operations at its Sulur facility in September 2024. After successfully shipping its first prototype to the United States in December 2024, the company achieved its first commercial shipment by March 2025. The Sulur facility is designed to support both domestic and international customers, contributing to the expansion of India’s local semiconductor supply chain. While global semiconductor equipment manufacturers like Applied Materials and LAM Research dominate the market, YES’s initiative marks a significant step towards enhancing India’s capabilities in this sector.

With over four decades of global operations, YES specializes in processing equipment for the semiconductor, display, and life sciences industries. Its new facility in Sulur is set to meet the growing demand for its innovative solutions, including VertaCure, VeroTherm, and VeroFlex systems for advanced wafer and panel-level packaging applications. The company also aims to strengthen India’s local supply chain and create employment opportunities. Currently, YES employs around 70 people at its Sulur facility, an equal number at its design center in Coimbatore, and about 80 personnel in Bengaluru for data analytics and other specialized roles.

Government officials hailed the shipment as a milestone in India’s semiconductor industry. “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,” said S. Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY).

Tamil Nadu’s Minister for Industries, TRB Rajaa, highlighted the government’s support for semiconductor investments, stating, “We are immensely happy that the first semiconductor equipment from the YES Sulur facility has been successfully shipped. This is yet another success of Chief Minister MK Stalin’s US trip last year and the Tamil Nadu Semiconductor and Advanced Electronics Policy. Our government is committed not only to attracting investment but also to ensuring these investments translate into jobs. Despite global and national challenges, Tamil Nadu remains steadfast in its mission to be a global semiconductor hub. That’s why the Tamil Nadu Budget 2025 has announced semiconductor manufacturing parks in Sulur and Palladam under a new ₹500-crore Semiconductor Mission.”

Ramakanth Alapati, Chairman and CEO of YES, emphasized the company’s commitment to India’s semiconductor growth. “This milestone of the first shipment from the Sulur facility underscores our unwavering commitment to strengthening the India semiconductor ecosystem. This facility is fully integrated with our global manufacturing network, allowing us to consistently provide the reliability and technical expertise that our customers expect.”

YES’s expansion in India signifies a crucial step in reducing dependence on imported semiconductor equipment while bolstering India’s role in the global semiconductor supply chain.

HBL