The government has approved Kaynes Technology’s proposal to establish a semiconductor manufacturing facility in Sanand, Gujarat, with an investment of ₹3,307 crore. The plant will have a production capacity of 6.3 million chips per day.
Announcing the decision, IT Minister Ashwini Vaishnaw highlighted India’s progress towards building a comprehensive semiconductor ecosystem. He stated, “The Cabinet has given the green light to Kaynes’ plant, which will span 46 acres and is designed to produce 6.3 million chips daily. A significant portion of the production has already been allocated for Kaynes Industries.”
The facility will also produce chips for the power sector, with applications in automobiles, home appliances, and other industries. Kaynes has secured land in Sanand, and construction is expected to begin soon.
This investment is part of the larger “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India,” initiated on December 21, 2021, with a total funding allocation of ₹76,000 crore. The program aims to establish India as a global semiconductor manufacturing hub.
The Sanand facility is the latest addition to the government’s approved semiconductor projects. In June 2023, the first semiconductor unit in Sanand received approval, followed by three additional projects, including a semiconductor fab by Tata Electronics in Dholera, Gujarat, and another facility in Morigaon, Assam. CG Power is also setting up a semiconductor unit in Sanand. Collectively, these projects are expected to attract nearly ₹1.5 lakh crore in investments and will have a combined production capacity of approximately 7 crore chips per day.
