New Delhi: In a significant step towards strengthening India's semiconductor ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal of Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat. This move is part of the government’s broader initiative to create a vibrant semiconductor ecosystem in the country. The new semiconductor unit will be set up with an investment of Rs. 3,300 crore and will have the capacity to produce 60 lakh chips per day. These chips will cater to a diverse range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones, among others.

Building a Robust Semiconductor Ecosystem

This latest approval is part of the "Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India," which was launched in December 2021 with a total outlay of Rs. 76,000 crore. The program aims to position India as a global hub for semiconductor manufacturing. In June 2023, the Union Cabinet approved the first proposal for a semiconductor unit in Sanand, Gujarat. Following this, in February 2024, three additional semiconductor units were approved:

• Tata Electronics: Setting up a semiconductor fab in Dholera, Gujarat, and another unit in Morigaon, Assam.
• CG Power: Establishing a semiconductor unit in Sanand, Gujarat.

Progress and Investment

Construction of all four semiconductor units is progressing rapidly, with a robust ecosystem beginning to take shape around these facilities. Together, these units represent a combined investment of nearly Rs. 1.5 lakh crore and will have a cumulative production capacity of approximately 7 crore chips per day.

Conclusion

The approval of the Kaynes Semicon Pvt Ltd unit and the ongoing development of other semiconductor facilities underscore India's commitment to becoming a key player in the global semiconductor industry. This initiative is expected to not only meet domestic demand but also position India as a significant exporter of semiconductor chips, driving economic growth and technological advancement in the country.