“Government Greenlights Fifth Semiconductor Facility in India”
The Union Cabinet has given the green light for the establishment of a new semiconductor unit by Kaynes Semicon in Sanand, Gujarat, marking the fifth such unit approved under the India Semiconductor Mission (ISM). The project represents a significant investment of ₹3,307 crore (US$394.15 million) and will further bolster India’s semiconductor manufacturing capabilities.
The Union Cabinet has given the green light for the establishment of a new semiconductor unit by Kaynes Semicon in Sanand, Gujarat, marking the fifth such unit approved under the India Semiconductor Mission (ISM). The project represents a significant investment of ₹3,307 crore (US$394.15 million) and will further bolster India’s semiconductor manufacturing capabilities.
Electronics and Information Technology Minister Ashwini Vaishnaw announced the approval on Monday, highlighting that this new facility will be set up on a 47-50 acre site. The Kaynes Semicon unit will focus on assembly, testing, marking, and packaging (ATMP) and is expected to produce approximately 6 million chips daily. These chips will serve various sectors, including the automotive industry, electric vehicles, consumer electronics, telecom equipment, and mobile phones.
The establishment of this unit is part of India’s broader strategy to enhance domestic semiconductor production and reduce dependency on foreign imports. Since the launch of the ISM and display manufacturing ecosystem in December 2021, the government has approved a total investment of ₹1,52,307 crore (US$18.15 billion) across five semiconductor units.
Raghu Panicker, CEO of Kaynes Semicon, outlined the project’s progress, mentioning that structural tests, soil testing, and site preparation are underway. The clean room construction is expected to be completed within six to eight months, with the first packaged chips slated for release by March 31, 2025. Kaynes Semicon has already secured partnerships with technology firms from Malaysia, Taiwan, and Japan to support the unit’s development.
The new unit was initially planned for Telangana but has been redirected to Gujarat. Vaishnaw also provided updates on other semiconductor projects in India, including American company Micron’s ATMP facility in Gujarat and Tata Electronics’ semiconductor fab unit in Dholera, Gujarat, which is being developed in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).
The approval of Kaynes Semicon’s unit reinforces India’s commitment to becoming a global hub for semiconductor manufacturing, aligning with the nation’s vision to advance its technological infrastructure and promote domestic production capabilities.
Sources By Agencies
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