Kaynes Technology has opened India's first waveguide manufacturing line in Mysuru in partnership with US-based DigiLens, placing the country in the global supply chain for extended reality (XR) and defense optics.
Waveguides are thin transparent components that channel light from micro displays into the eye. They are considered the most technically demanding part of XR devices and are essential for applications such as smart glasses and heads-up displays (HUDs).
Until now, commercial production has been concentrated in the US, Europe, Japan, Taiwan, and China. The move gives global OEMs an additional source for a critical component in XR and defense platforms at a time when supply diversification is becoming a strategic priority.
Scaling for competitiveness
According to Himanshu Verma, business head for XR/AI at Kaynes Technology, the Mysuru facility gives India its first domestic AR optics capability, with cost competitiveness and defense-certified trust as its twin advantages.
"Our advantage comes from two areas," Verma said. "We are scaling production with automation to deliver at globally competitive prices, while building credibility through defense-certified applications such as HUDs and aerospace, where reliability matters most. This dual approach provides a foundation for Kaynes to become a go-to supplier for XR optics."
Verma said Kaynes expects to overcome the industry-wide challenge of scaling waveguides from prototypes to commercial volumes by using DigiLens process know-how, automation investments, and inline process controls, while building a local talent base in optics. "These steps will allow us to reach commercially viable volumes within 12 to 24 months," he said.
For supply chain managers, the timeline matters: it suggests India could begin contributing export-ready waveguides by 2026, creating a new node of capacity outside existing centers.
Customers and China plus one positioning
Verma said Kaynes is developing two clear customer pathways. In the near term, it is targeting defense, aerospace, and automotive customers in India with HUDs and visors. It is also engaging with domestic and international XR OEMs, with qualification discussions already underway.
"We offer more than just an India-based supply chain," Verma said. "Our strength lies in trusted defense certifications, export readiness, strong IP protection, and competitive costs. We believe this positions Kaynes as a resilient China plus one partner for global OEMs."
The implications are twofold. Defense demand can anchor early volumes, reducing risk for the line, while the China plus one pitch could make India a relevant option for multinational XR customers that need to hedge geopolitical risk.
Long-term roadmap and ecosystem impact
The Mysuru waveguide line is the first stage of a broader move into advanced optics and semiconductor-adjacent domains, according to the company.
"Our roadmap starts with waveguides, then HUDs, followed by smart glasses and XR headsets, and eventually full design and manufacturing leadership," he said. "We also see opportunities in advanced displays, substrates, photonics, and packaging. The goal is to build India's advanced display and electronics stack, moving beyond assembly into critical layers of the ecosystem."
For global semiconductor supply chains, this signals India's strategy of entering high-value adjacencies where barriers to entry are lower than wafer fabs but supply chain dependence is acute. Success will depend on whether Kaynes can scale production to international standards and convert early defense and automotive engagements into long-term export contracts.
Article edited by Jack Wu
