India approves new Rs 3,300 crore semiconductor plant in Gujarat

In a bid to strengthen India’s semiconductor industry, the Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor manufacturing unit by Kaynes Semicon Pvt Ltd. The plant will be set up in Sanand, Gujarat, with an investment of Rs 3,300 crore.

This new facility will have the capacity to produce 60 lakh chips daily. These chips will serve a broad range of sectors, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

This approval is part of a larger government initiative to boost India’s semiconductor ecosystem. The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, launched in December 2021, has a budget of ₹76,000 crore.

Before this latest approval, the Union Cabinet had already greenlit several semiconductor projects:

    •    June 2023: The first semiconductor unit in Sanand, Gujarat.
    •    February 2024: Three additional units were approved:
    •    Tata Electronics’ semiconductor fab in Dholera, Gujarat.
    •    Another unit in Morigaon, Assam.
    •    CG Power’s semiconductor unit in Sanand, Gujarat.

These four projects, which are currently under construction, are expected to attract a combined investment of around ₹1.5 lakh crore and will collectively produce about 7 crore chips daily.