Telangana-Gujarat Semiconductor Rift: Kaynes' Investment Sparks Political Uproar

After India's Union Cabinet approved a semiconductor unit in Gujarat, KT Rama Rao criticized Telangana's administration for losing the project. Despite criticism, Telangana Minister Sridhar Babu reaffirmed Kaynes Semicon's commitment to a major Hyderabad project, countering misinformation and emphasizing the positive impact on employment.

In a move electrifying India's semiconductor landscape, the Union Cabinet has greenlit a project to set up a semiconductor manufacturing unit in Gujarat. This decision has sparked a wave of political contention, with KT Rama Rao, Bharat Rashtra Samithi (BRS) working president, levying criticism against the current Telangana government.

Rao took to X, highlighting that Kaynes Semicon Pvt Ltd initially intended to establish the unit in Telangana, a plan which was publicly announced in October 2023. According to Rao, significant efforts were made to secure the deal, including allocating land near the Foxconn plant at Kongara Kalan. He labeled the shift to Gujarat as a major loss for Telangana, both in investment and industrial growth.

In stark contrast, Telangana Minister for Industries and Commerce Sridhar Babu refuted the claims, asserting that Kaynes Semicon remains committed to their Hyderabad project. He condemned the misinformation, clarifying that an additional facility in Gujarat would not detract from the investment in Telangana, but rather complement it by boosting employment opportunities and industrial capacity.

(With inputs from agencies.)