The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved Kaynes Semicon Pvt Ltd’s proposal to establish a semiconductor manufacturing unit in Sanand, Gujarat, with an investment of Rs 3,300 crore. This project is part of the India Semiconductor Mission (ISM) and aims to bolster the country’s semiconductor production capabilities.
The new unit will have the capacity to produce approximately 60 lakh chips per day, catering to a wide range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones. Prime Minister Modi highlighted the potential for India to realize its vision of creating a ‘Made in India’ chip for every piece of equipment, with the first indigenously-developed chip expected to be ready by the end of this year.
In March, PM Modi laid the foundation stone for three major semiconductor projects worth Rs 1.25 lakh crore. Among these, Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and another unit in Morigaon, Assam. CG Power is also establishing a semiconductor unit in Sanand. These projects are anticipated to create numerous direct and indirect jobs, contributing significantly to India’s growing semiconductor industry.
The Ministry of Electronics and IT reported that the construction of all four semiconductor units is progressing rapidly, with a robust semiconductor ecosystem emerging around these facilities. Collectively, these units are expected to attract investments of nearly Rs 1.5 lakh crore, with a combined capacity of about 7 crore chips per day.
Launched in 2021 with a total outlay of Rs 76,000 crore, the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India aims to make the country a major player in the global semiconductor market. According to industry reports, India’s semiconductor-related market is projected to reach $64 billion by 2026, nearly tripling in size compared to 2019.
Union Railways and IT Minister Ashwini Vaishnaw recently stated that within the next five years, India is set to become one of the world’s largest semiconductor hubs, further cementing its position in the global technology landscape.
