The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the establishment of a new semiconductor unit by Kaynes Semicon Pvt Ltd. This development marks the fifth semiconductor unit in the country, reinforcing India’s ambition to become a global hub for semiconductor manufacturing.
The newly approved semiconductor unit will be set up in Sanand, Gujarat, with an investment of ₹3,300 crore. The facility will have a production capacity of 60 lakh chips per day, catering to a broad spectrum of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was launched on December 21, 2021, with a total outlay of ₹76,000 crore, has been pivotal in attracting significant investments in the semiconductor sector. The latest approval follows the Union Cabinet’s earlier decisions, including the approval in June 2023 for the first semiconductor unit in Sanand, Gujarat, and the subsequent approval in February 2024 of three more semiconductor units.
These additional units are being set up by Tata Electronics in Dholera, Gujarat, and Morigaon, Assam, as well as by CG Power in Sanand, Gujarat. The combined investment for these four units is projected to be nearly ₹1.5 lakh crore, with a cumulative production capacity of approximately 7 crore chips per day.
The Ministry of IT emphasized the rapid progress in the construction of these units, which is contributing to the emergence of a robust semiconductor ecosystem around these locations.
