In a significant move to bolster India’s semiconductor industry, the Union Cabinet, led by Prime Minister Narendra Modi, has approved Kaynes Semicon Pvt Ltd’s proposal to establish a new semiconductor manufacturing unit in Sanand, Gujarat. This unit, backed by an investment of ₹3,300 crore, is expected to produce 60 lakh chips per day.
These chips will serve a wide range of industries, including automotive, electric vehicles, consumer electronics, telecom, and mobile phones, further strengthening India’s position in the global semiconductor supply chain.
This approval is part of the broader Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was launched on December 21, 2021, with a budget of ₹76,000 crore. In June 2023, the Union Cabinet approved the first semiconductor unit in Sanand, Gujarat, and in February 2024, three additional units received approval: Tata Electronics is building a semiconductor fab in Dholera, Gujarat, with another unit in Morigaon, Assam, and CG Power is setting up a semiconductor unit in Sanand, Gujarat.
The construction of these four semiconductor units is progressing swiftly, contributing to the development of a robust semiconductor ecosystem around them. Collectively, these units represent an investment of nearly ₹1.5 lakh crore and will have a combined production capacity of around 7 crore chips per day.
