New Delhi: With the objective of developing a vibrant semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat. The proposed unit will be established with an investment of Rs 3,300 crore and will have a capacity of 60 lakh chips per day.
The chips produced in this unit will cater to a wide variety of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, and more. The Programme for the Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21, 2021, with a total outlay of Rs 76,000 crore.
In June 2023, the Union Cabinet approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat. In February 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a semiconductor unit in Morigaon, Assam. CG Power is establishing another semiconductor unit in Sanand, Gujarat.
The construction of all four semiconductor units is progressing at a rapid pace, and a robust semiconductor ecosystem is emerging around these facilities. These four units will bring an investment of nearly Rs 1.5 lakh crore, with a cumulative capacity of approximately 7 crore chips per day.