Yield Engineering Systems ships India-made semiconductor manufacturing equipment from Coimbatore

Yield Engineering Systems, Inc. (YES), a materials and engineering equipment solutions provider, on Thursday said that it has become the first player to ship from India a key semiconductor manufacturing equipment called the VeroTherm Formic Acid Reflow tool to a leading global semiconductor manufacturer.

This was shipped from the company’s Sulur, Coimbatore, manufacturing facility and represents the first equipment made in India for advanced semiconductor applications, the company said. This equipment is a part of the larger semiconductor manufacturing process and enables 3D stacking of memory and logic chips to support the growth of high-performance AI accelerators driven by large language model (LLM) applications. Essentially it is one of the capital tools that are used alongside others in a fab and solders the wafers into beads in a gas chamber. 

YES is headquartered in Fremont, California and its operations at its Sulur facility started in September 2024. After shipping its first prototype of this equipment to the US in December 2024, the company has managed to make its commercial shipment by March. This facility is aimed at serving its customers’ operations in India and the world. For India, this helps expand the local supply chain for semiconductor manufacturing equipment. Globally, Applied Materials, LAM Research, and others make the large-ticket equipment needed to make chips.

New facility

With over four decades of operations globally, YES makes processing equipment for the semiconductor, display, and life sciences industries. The new facility is designed to meet the growing demand for YES’s innovative solutions, including VertaCure, Verotherm, and VeroFlex systems for advanced wafer and panel-level packaging applications. The company also plans to cultivate a robust local supply chain, thereby creating numerous employment opportunities within the community. YES has around 70 people in its Sulur facility and an equal number in its design centre in Coimbatore. YES also houses around 80 people in Bengaluru for data analytics and other niche roles.

“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,” S Krishnan, Secretary, MeitY, said in a statement.

“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. 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 Tamil Nadu Budget 2025, the State has announced semiconductor manufacturing parks in Sulur and Palladam under a new ₹500-crore Semiconductor Mission,” TRB Rajaa, Minister for Industries, said.

“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,” stated Ramakanth Alapati, Chairman and CEO of YES. “This facility is fully integrated with our global manufacturing network, allowing us to consistently provide the reliability and technical expertise that our customers expect.”