The Union Cabinet approved the establishment of India's fifth semiconductor facility, which will be set up by Kaynes Technology in Sanand, Gujarat. This assembly, testing, marking, and packaging (ATMP) unit will involve an investment of Rs 33.07 billion and will have a production capacity of 6.3 million chips per day.
Union Minister of Electronics and IT Ashwini Vaishnaw, at a press briefing following the Cabinet meeting, announced that the Cabinet had approved the Kaynes Technology plant. He described it as a large facility, covering 46 acre, with significant production expectations. The industries that will receive chips from this plant have already been secured, according to the minister.
He further mentioned that the majority of the chips produced at this facility will be used in power-related equipment for trains, automobiles, and home appliances.
The Kaynes ATMP project marks the fifth semiconductor unit approved under the Rs 760-billion India Semiconductor Mission (ISM). This follows earlier approvals for semiconductor facilities by Micron, Tata, and CG Power in Gujarat, as well as another Tata project in Assam.
In June 2023, the Cabinet had approved a proposal for a semiconductor unit in Sanand by the US-based memory chip giant Micron. Subsequently, in February this year, three more semiconductor units were approved: Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam; CG Power is establishing an outsourced semiconductor assembly and test (OSAT) unit in Sanand.
According to an official press release from the government, the construction of all four previously approved semiconductor units is progressing rapidly, contributing to the development of a robust semiconductor ecosystem in the region. These units are expected to attract nearly Rs 1.5 trillion in investment and have a cumulative production capacity of about 70 million chips per day.
Vaishnaw added that the construction of the Micron facility is advancing well, with the first made-in-India chip expected to be produced by mid-2025.
The India Electronics and Semiconductor Association (IESA) expressed gratitude to the Ministry of Electronics and IT and ISM for their support in approving the Kaynes project.
