Cabinet Greenlights New Semiconductor Plant by Kaynes Semicon Pvt. Ltd. under ISM
Union Cabinet, chaired by Prime Minister Narendra Modi, approved a new semiconductor unit by Kaynes Semicon Pvt Ltd in Sanand, Gujarat. The project involves an investment of INR 3,300 crore and is expected to produce 60 lakh chips per day. These chips will cater to diverse sectors including automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
This approval is part of the larger Programme for Development of Semiconductors and Display Manufacturing Ecosystem, launched in December 2021 with a budget of INR 76,000 crore. The project aims to establish a strong domestic semiconductor ecosystem.
This new approval adds to previous clearances for semiconductor units in Sanand, Dholera, and Morigaon. Notably, Tata Electronics is setting up a fab unit in Dholera, Gujarat, and CG Power is building a unit in Sanand, Gujarat.
Together, the four semiconductor units under construction will bring in investments totaling nearly INR 1.5 lakh crore and have a combined production capacity of 7 crore chips per day, signaling robust momentum in India’s semiconductor industry.
