Union Cabinet Approves New Semiconductor Unit Worth INR 3,330 Crore Under India Semiconductor Mission The newly approved semiconductor unit in Sanand represents an investment of INR 3,300 crore. This state-of-the-art facility will boast a production capacity of 6 million chips per day
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The Indian government's aggressive push to develop a robust semiconductor ecosystem continues to gain momentum. In a significant move, the Union Cabinet, led by Prime Minister Narendra Modi, has approved the setup of a new semiconductor unit by Kaynes Semicon Pvt Ltd in Sanand, Gujarat, as per a press release. This development is a critical component of the broader India Semiconductor Mission (ISM), which aims to position India as a global hub for semiconductor manufacturing.
The newly approved semiconductor unit in Sanand represents an investment of INR 3,300 crore. This state-of-the-art facility will boast a production capacity of 6 million chips per day. The chips produced at this facility are intended to serve a diverse range of industries, including automotive, electric vehicles (EVs), consumer electronics, telecom and mobile phones. The wide application spectrum underscores the strategic importance of this investment, as semiconductors are the backbone of modern technology.
This latest approval is part of a broader initiative by the Indian government to establish a self-reliant semiconductor manufacturing base. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, launched in December 2021 with a total outlay of INR 76,000 crore, provides the policy framework and financial support necessary to attract global and domestic investments in this critical sector.
The approval of Kaynes Semicon's facility follows a series of significant developments in India's semiconductor landscape. In June 2023, the Union Cabinet approved the first semiconductor unit in Sanand, Gujarat, marking the beginning of this ambitious journey. By February 2024, three more units had received the green light, including a semiconductor fab by Tata Electronics in Dholera, Gujarat and two additional units—one in Morigaon, Assam, and another by CG Power in Sanand.
The cumulative investment in these four units alone is expected to reach INR 1.5 lakh crore. Once operational, these facilities will collectively produce approximately 70 million chips per day, a testament to the scale and ambition of India's semiconductor mission.
