Cabinet Greenlights ₹3,300 Crore Investment For Kaynes Chip Plant Under Semiconductor Scheme In Gujarat

India is taking major strides towards becoming a global semiconductor hub. The Union Cabinet on Monday (September 2) gave the nod to Kaynes Semicon Private Limited to set up a semiconductor packaging plant in Sanand, Gujarat.

The plant is set to cover an area of approximately 46 crore with an investment of Rs 3,300 crore. Moreover, the plant will boast a production capacity of 6.3 million chips daily, or more than 60 lakh chips.

The Kaynes Semicon project is part of a larger project plan that is the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, announced in December 2021 with a budget of Rs 76,000 crore.

"In June, 2023, the Union Cabinet had approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat," according to the Cabinet press statement.

"In February, 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam. CG Power is setting up one semiconductor unit in Sanand, Gujarat,"  as per the press release.

These developments are expected to bring a cumulative investment of close to Rs 1.5 lakh crore, with the four semiconductor units projected to produce nearly 7 crore chips per day.

As per the release, "Construction of all 4 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. These 4 units will bring an investment of almost Rs 1.5 Lakh crore. The cumulative capacity of these units is about 7 crore chips per day."