Shares of SEALSQ Corp. (NASDAQ:LAES) experienced a notable increase on Thursday following the announcement of a strategic international technology agreement. This announcement detailed SEALSQ's memorandum of understanding (MoU) with the Government of Gujarat and Kaynes SemiCon Private Limited, focusing on the establishment of a secure semiconductor manufacturing center within India.
Targeted at leveraging Gujarat's position within India’s industrial landscape, the facility is planned to be situated on Kaynes SemiCon’s campus in Sanand, Gujarat. The projected output from this center aims to reach an impressive volume of approximately 300 million secure chips per year, specifically designed to cater to advanced security needs embedded in post-quantum cryptography technologies.
The collaboration centers around creating what is described as a trusted, onshore hub for designing, testing, and personalizing semiconductor chips that are resistant to quantum-level threats. This ambition is directly aligned with governmental strategies, demonstrated by the involvement of high-level officials such as Harsh Rameshbhai Sanghavi, Deputy Chief Minister of Gujarat, who attended the MoU signing ceremony. Such involvement underscores the state's resolve to develop itself into a global nucleus for secure, advanced semiconductor production.
The initiative addresses an increasing demand for quantum-resistant chips particularly in sectors that are critically sensitive to security risks. These sectors include government agencies, defense establishments, and telecommunications providers, all of whom require robust, future-proof hardware to safeguard crucial data and infrastructure.
Under the terms of the agreement, the involved parties intend to create a new company tentatively named SEALKAYNESQ Ltd. This joint venture will be responsible for operating an outsourced semiconductor test and personalization (OSTP) facility. Key functions of this facility will include cryptographic key injection, secure provisioning, and enabling post-quantum capabilities within semiconductor devices.
This project is strategically aimed at reducing reliance on imported chip personalization services and enhancing India's digital sovereignty. Support for the facility is expected to come from a combination of government incentives, private sector investment, and direct funding from SEALSQ, which is likely to expedite the construction timeline and ensure sustained long-term operations.
By integrating SEALSQ’s expertise in post-quantum cryptography technologies with Kaynes' established manufacturing infrastructure and the institutional support provided by the Gujarat government, the alliance aspires to position the region as a premier hub for next-generation secure semiconductor technologies. This could have significant implications for regional supply chains and technological independence.
Reflecting investor response to the announcement, SEALSQ stock price increased by 15.55% on Thursday, trading at $5.36 at the time of reporting, as captured by market monitoring services such as Benzinga Pro.