In a move to bolster India’s semiconductor manufacturing capabilities, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal by Kaynes Semicon Pvt Ltd to establish a state-of-the-art semiconductor unit in Sanand, Gujarat. With an investment of Rs 3,300 crore, this facility is set to produce 60 lakh chips per day, targeting diverse industries such as automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
The establishment of this unit is a critical part of India’s broader strategy to develop a robust semiconductor and display manufacturing ecosystem. This initiative was formally set in motion with the government’s “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India,” which was announced on December 21, 2021, with a total outlay of Rs 76,000 crore.
The Sanand facility is not an isolated effort. In June 2023, the Union Cabinet had already approved the first proposal for a semiconductor unit in Sanand. By February 2024, three additional semiconductor units received approval, marking a significant expansion of India’s semiconductor production capacity. Among these, Tata Electronics is establishing a semiconductor fabrication plant in Dholera, Gujarat, while CG Power is setting up a unit in Sanand. Additionally, a semiconductor unit is being developed in Morigaon, Assam.
The construction of all four semiconductor units is progressing rapidly, heralding the emergence of a vibrant semiconductor ecosystem in the regions surrounding these facilities. Collectively, these units are expected to attract investments totaling nearly Rs 1.5 lakh crore, with a cumulative production capacity of approximately 7 crore chips per day.
