Cabinet Approves Kaynes Semicon's Rs 3,300 Crore Semiconductor Unit in Gujarat

In June 2023, the Union Cabinet had already approved the first semiconductor unit in Sanand, Gujarat. Following that, in February 2024, three more semiconductor units were greenlit.

In a significant move to bolster India's semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal by Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat. The project, set to attract an investment of Rs 3,300 crore, will have the capacity to produce 60 lakh chips per day. These chips will cater to a wide range of industries, including automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

This development is part of the broader Programme for the Development of Semiconductors and Display Manufacturing Ecosystem in India, which was launched on December 21, 2021, with a total outlay of Rs 76,000 crore. The program aims to create a robust semiconductor manufacturing and supply chain in the country.

In June 2023, the Union Cabinet had already approved the first semiconductor unit in Sanand, Gujarat. Following that, in February 2024, three more semiconductor units were greenlit. These include a Tata Electronics semiconductor fab in Dholera, Gujarat, another semiconductor unit in Morigaon, Assam, and a CG Power unit in Sanand, Gujarat.

The construction of all four semiconductor units is progressing swiftly, marking the emergence of a strong semiconductor ecosystem around these facilities. Collectively, these projects are expected to bring in investments totaling nearly Rs 1.5 lakh crore and will have a combined production capacity of approximately 7 crore chips per day.