KUALA LUMPUR (March 24): Kelington Group Bhd (KL:KGB) has clinched a contract worth RM414 million to deliver a turnkey gas distribution system for a semiconductor wafer fabrication facility in Gujarat, India.

The contract, awarded by an unidentified semiconductor manufacturer in India, covers the design and delivery of a comprehensive gas distribution system that forms part of the project’s mission-critical infrastructure, the group said in a bourse filing on Tuesday.

Works commenced immediately after Kelington’s wholly-owned subsidiary, Kelington Engineering (S) Pte Ltd, received the letter of award on March 19. The contract is slated for completion by July 2028.

Kelington is riding on a wave of new fab projects sweeping across the globe amid a major push for ‘semiconductor sovereignty’ in an industry fraught with geopolitical and trade tensions as well as fragile supply chain.

In India, the government has launched the India Semiconductor Mission backed by incentives and investments of around US$10 billion to turn the country into a global hub for semiconductor design, manufacturing, and technology development.

At the end-2025, Kelington’s outstanding order book stood at RM1.38 billion.

At Tuesday’s midday break, shares of Kelington eased 0.4% or two sen to RM4.98, valuing the company at RM3.93 billion ahead of the contract announcement. The counter has gained 49.5% over the past year.