The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to
Kaynes Semicon Pvt. Ltd. for setting up its ₹3,300 crore semiconductor assembly, testing,
marking, and packaging (ATMP) facility in Sanand, Gujarat. Spanning 46 acres, the new
plant will manufacture up to 6.3 million chips daily. These chips will serve a wide range of
industries including automotive, electric vehicles, telecom, consumer electronics, and mobile
phones.
This move aligns with India’s Semiconductor Mission, which was introduced as part of the
government’s broader ₹76,000 crore initiative to build a strong semiconductor manufacturing
ecosystem in the country. The program, announced in December 2021, aims to reduce India’s
dependence on chip imports by encouraging local production. The Sanand facility is one of
several projects aimed at making India a major global hub for semiconductor manufacturing.
The first plant in Sanand was approved in June 2023, with subsequent approvals for three
more units, including a Tata Electronics facility in Dholera, Gujarat, and another in Assam.
Together, these semiconductor projects are expected to draw an investment of approximately
₹1.5 lakh crore. The cumulative production capacity from these facilities is estimated to be
around 7 crore chips per day, contributing significantly to India’s self-reliance in the global
semiconductor market. Construction of all four semiconductor units is progressing rapidly,
marking a critical step forward in India’s semiconductor ambitions.
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