PM Modi inaugurates Rs 3,300 crore Kaynes semiconductor plant in Gujarat

Prime Minister Narendra Modi on March 31 inaugurated the Rs 3,300 crore semiconductor facility of Kaynes Semicon at Sanand GIDC in Ahmedabad, marking a key milestone in India’s efforts to build domestic chip manufacturing capabilities.

The plant, an outsourced semiconductor assembly and test (OSAT) facility, has commenced commercial operations and will focus on semiconductor assembly, packaging and testing, a critical segment in the global chip value chain.

"Kaynes, an Indian company, has become a strong part of the global semiconductor supply chain. In the coming times, many Indian companies will provide a resilient semiconductor supply chain to the world. With the initiation of production in this facility, India is affirming its role as a trusted semiconductor supplier," PM Modi said.

The Sanand unit, developed under the India Semiconductor Mission, is India’s second operational semiconductor facility after Micron Technology inaugurated its unit earlier this year.

"A new bridge has been established between Sanand and Silicon Valley. I have been told that a big part of the products being manufactured here has been booked for export. 'Make in India, Make for the World' will echo in the entire world," PM Modi added.

Commercial production at the Kaynes facility has begun with Intelligent Power Modules (IPMs), which are widely used in electric vehicles, industrial systems and energy-efficient appliances. These modules integrate multiple chips into a single package to enhance performance and efficiency.

Once fully scaled, the plant is expected to have a production capacity of around 6.3 million units per day, catering to both domestic demand and global markets, including supplies to international semiconductor firms.

The development comes as India seeks to reduce its dependence on semiconductor imports and increase value addition within the country. The OSAT segment, while not involving wafer fabrication, plays a crucial role in enabling downstream manufacturing and product integration.

"India is also striving to build a robust supply chain for raw materials, and India's inclusion in PAC Silica is a part of this very effort. We aim to ensure a secure supply chain within India in collaboration with all our global partners," PM Modi said.

Industry body India Electronics and Semiconductor Association (IESA) said the inauguration signals tangible progress in India’s semiconductor ambitions.

“IESA welcomes the inauguration of Kaynes Semicon’s OSAT facility… terming it a clear demonstration of India’s shift from intent to successful execution in the semiconductor sector,” said Ashok Chandak, President of IESA and SEMI India.

Chandak added that the launch, along with the commercial rollout of the Multi-Chip Intelligent Module (MCM), “underscores India’s growing strength in advanced packaging, system integration, and scalable semiconductor manufacturing.”

He noted that the facility represents “a decisive step beyond design into advanced assembly, testing, and packaging (ATMP)” and will “significantly boost domestic manufacturing capability while driving local economic development and strengthening ancillary industries.”

India has set ambitious targets of building a $400 billion electronics market and a $103 billion semiconductor market by 2030. According to Chandak, achieving this will require “sustained execution across the value chain,” with projects like Kaynes’ facility demonstrating that “India is firmly on that path.”