Govt approves Rs 3,300 crore chip proposal by Kaynes under semiconductor scheme

Union Minister Ashwini Vaishnaw

The Cabinet has approved a Rs 3,300 crore proposal by electronics maker Kaynes to build a semiconductor packaging plant with a capacity to produce 60 lakh chips a day, Union minister Ashwini Vaishnaw said on September 2.

The proposed unit will be set up in Sanand, Gujarat where two other chipmaking proposals have been approved under the Rs 76,000 crore India Semiconductor Mission.

"Today, the Cabinet has approved Kaynes' plant, with a capacity of 6.3 million chips per day. The plant will come up in 46 acres, it is a big plant and large portion of the production will go for Kaynes Industries, it has already been booked," the minister said.

The chips produced in the Kaynes unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

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

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

Construction of all 4 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units, said Vaishnaw. 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.