Union Cabinet Approves Kaynes Technology’s Rs 3,307 Crore Semiconductor Facility

The Union Cabinet has given the green light for India’s fifth semiconductor facility, which will be established by Kaynes Technology in Sanand, Gujarat. This new Assembly, Testing, Marking, and Packaging (ATMP) unit represents a significant investment of Rs 3,307 crore and is designed to produce up to 6.3 million chips daily.

Union Minister of Electronics and IT, Ashwini Vaishnaw, announced the approval at a press briefing, highlighting the plant’s vast scale, spanning 46 acres. He emphasized the high demand for the chips, which will primarily be used in power-related equipment for train sets, automobiles, and home appliances.

This latest ATMP facility by Kaynes marks the fifth semiconductor project approved under the Rs 76,000 crore India Semiconductor Mission (ISM). It follows the previously sanctioned facilities by Micron, Tata, and CG Power in Gujarat, along with another Tata project in Assam.

The semiconductor initiative in Sanand, Gujarat, began with the Union Cabinet’s approval of Micron’s proposal in June 2023. Earlier this year, in February, three additional projects were sanctioned, including a semiconductor fabrication unit by Tata Electronics in Dholera, Gujarat, and a testing and assembly facility in Morigaon, Assam. Additionally, CG Power is setting up an outsourced semiconductor assembly and testing (OSAT) unit in Sanand, Gujarat.

According to an official government press release, the construction of these four semiconductor units is advancing swiftly, contributing to a burgeoning semiconductor ecosystem. These projects collectively represent an investment nearing Rs 1.5 lakh crore, with a combined production capacity of approximately 7 crore chips per day.

Minister Vaishnaw also provided an update on the Micron facility, the first project approved under ISM in June 2023. He noted that construction is on track, with the first made-in-India chip expected by mid-2025.

The India Electronics and Semiconductor Association (IESA) expressed its gratitude to the Ministry of Electronics and IT and the ISM for supporting the Kaynes semiconductor project. IESA President Ashok Chandak commented on the progress, stating that with the contributions of companies like Tata, Micron, Renesas, and Kaynes, India is rapidly building a comprehensive semiconductor ecosystem. This development is poised to not only support the domestic electronics sector but also cater to the growing global semiconductor market, which is projected to reach $1 trillion by 2030.

Kaynes Technology also has a strong foothold in the IoT solutions-enabled integrated electronics manufacturing sector.