SEALSQ Corp, a developer of semiconductor and post-quantum technology solutions, announced it has signed a non-binding Memorandum of Understanding (MoU) with the Government of Gujarat and Kaynes SemiCon Private Limited to establish India’s first secure semiconductor facility focused on post-quantum cryptography.

Shares of SEALSQ surged about 11% on the news.

The proposed Outsourced Semiconductor Test and Personalization (OSTP) center will be located at Kaynes SemiCon’s manufacturing campus in Sanand, Gujarat, with plans to achieve an annual production capacity of up to 300 million post-quantum secure semiconductors.

The MoU was signed in the presence of Gujarat Deputy Chief Minister Shri Harsh Rameshbhai Sanghavi. Under the agreement, the parties intend to establish a joint venture tentatively named SEALKAYNESQ Ltd.

The facility aims to provide capabilities including wafer testing, secure personalization, cryptographic key injection, and post-quantum cryptographic enablement. It will primarily serve security-sensitive sectors including government, defense, critical infrastructure, telecommunications, and automotive.

The project is expected to receive financial support through a combination of government incentives and private sector investment, including direct investment from SEALSQ.

By combining SEALSQ’s post-quantum semiconductor expertise with Kaynes SemiCon’s manufacturing infrastructure and government support, the initiative seeks to reduce India’s reliance on offshore semiconductor supply chains.

The collaboration aligns with national initiatives including the India Semiconductor Mission and Atmanirbhar Bharat (Self-Reliant India) campaign.

According to the press release statement, the project aims to position Gujarat as a strategic hub for next-generation secure semiconductor technologies while preparing India’s digital infrastructure for emerging quantum computing challenges.