Kaynes Semicon Pvt Ltd to establish a semiconductor unit in Sanand, Gujarat
In a significant move towards bolstering India’s semiconductor manufacturing capabilities, the Union Cabinet has approved a proposal by Kaynes Semicon Pvt Ltd to establish a semiconductor unit in Sanand, Gujarat. This development comes under the ambit of the India Semiconductor Mission (ISM), which aims to position the country as a global semiconductor manufacturing hub.
The new facility in Sanand will be established with an investment of Rs 3,300 crore and is expected to produce 6 million chips per day. These chips will cater to a diverse range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
Launched in December 2021 with a budget of Rs 76,000 crore, the India Semiconductor Mission is a key initiative by the government to foster semiconductor production in the country. To date, the government has approved four assembly unit applications and one for chip manufacturing.
Commenting on the mission’s significance, Union Minister of Electronics and Information Technology Ashwini Vaishnaw said, “The semiconductor mission is a program designed for at least 10 years. The industry is crucial for industrial production in the country. We have a large automobile and electronic manufacturing industry in India. A significant number of appliances are now made in India, and the success of the ‘Make in India’ initiative requires that foundational industries like semiconductors are established within the country.”
Kaynes Semicon, a subsidiary of Karnataka-based Kaynes Technology, had initially applied to set up an OSAT (Outsourced Semiconductor Assembly and Test) plant in Telangana under the ISM scheme last year. However, in a recent announcement, the company revealed its decision to establish the OSAT unit in Sanand, where other major players like Micron and Murugappa Group’s CG Power have already committed to setting up their own semiconductor facilities.
The Sanand plant is expected to produce 6 million chips daily, serving a broad spectrum of applications across various sectors.
Furthermore, Minister Vaishnaw indicated that the government will soon introduce a second round of Production-Linked Incentives (PLI) for the semiconductor industry. This follows the Ministry of Electronics and Information Technology’s approval of a $11 billion fabrication plant by Tata Electronics in partnership with Taiwan’s Powerchip, as well as three chip assembly plants by Tatas, US-based Micron Technology, and Murugappa Group’s CG Power in collaboration with Japan’s Renesas.
