India strengthens semiconductor ecosystem with new unit in Gujarat

New Delhi, Sep 02: The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat.

This will be developed with an investment of Rs 3,300 crore, and will have the capacity to produce 60 lakh chips per day. The chips manufactured will serve a diverse range of sectors, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

The approval is part of the broader Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was announced on December 21, 2021, with a total budget allocation of Rs 76,000 crore.

This program aims to position India as a global hub for semiconductor manufacturing and drive innovation in key technology areas.

In June 2023, the Union Cabinet had already approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat. Building on this momentum, in February 2024, three additional semiconductor projects were approved. These include Tata Electronics semiconductor fab in Dholera, Gujarat, a semiconductor unit in Morigaon, Assam, and another unit by CG Power in Sanand, Gujarat.

Collectively, these projects represent an investment of nearly Rs 1.5 lakh crore and are expected to contribute a combined production capacity of approximately 7 crore chips per day.