Cabinet nod for Rs 3,300-crore semiconductor unit in Gujarat

New Delhi: In a significant move towards building a robust semiconductor ecosystem, the Union Cabinet, led by Prime Minister Narendra Modi, approved the proposal for Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat. This initiative, which involves an investment of Rs 3,300 crore, is expected to enhance India’s semiconductor production capabilities significantly.

The new unit will have a production capacity of 60 lakh chips per day, serving a wide range of industries including automotive, electric vehicles, consumer electronics, telecom, and mobile phones. This development aligns with the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was launched in December 2021 with an allocated budget of Rs 76,000 crore.

Earlier this year, in June 2023, the Union Cabinet had already greenlit the establishment of multiple semiconductor units, including Tata Electronics’ facilities in Dholera, Gujarat, and Morigaon, Assam, as well as another unit by CG Power in Sanand.

Together, these projects are expected to attract investments nearing Rs 1.5 lakh crore and achieve a combined production capacity of approximately 7 crore chips per day.