Cabinet Approves Rs 3,300 Crore Semiconductor Plant by Kaynes
In a significant boost to India’s semiconductor industry, the Union Cabinet has sanctioned a Rs 3,300 crore proposal from electronics manufacturer Kaynes to establish a state-of-the-art semiconductor packaging plant. The new facility, to be located in Sanand, Gujarat, is expected to have a daily production capacity of 6.3 million chips. Union Minister Ashwini Vaishnaw announced that the plant will occupy 46 acres and will cater to various sectors including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
This approval adds to the growing semiconductor ecosystem in Gujarat, complementing two other chipmaking projects previously greenlit under the Rs 76,000 crore India Semiconductor Mission. The first of these proposals was approved in June 2023, with construction progressing rapidly at all four sites. In February 2024, additional semiconductor units were also approved for Dholera and Morigaon, further expanding the sector’s footprint.
The combined investment for these four semiconductor units is set to reach approximately Rs 1.5 lakh crore, with a total production capacity of around 7 crore chips per day. This initiative is expected to foster a robust semiconductor ecosystem and strengthen India’s position in the global electronics market.
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