Minister Ashwini Vaishnaw.
Credit: PTI photo
New Delhi: Karnataka-based electronics manufacturing firm Kaynes Technology on Monday received the central government’s approval to set up a semiconductor unit in Gujarat with an investment of Rs 3,300 crore.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the proposal of setting up a new semiconductor unit, which will have the capacity to produce 60 lakh chips per day.
Kaynes Technology’s new chip manufacturing unit will be located at Sanand near Ahmedabad.
In October last year, Kaynes Technology had announced a plan to set up an Outsourced Semiconductor Assembly and Test (OSAT) and compound semiconductor facility in Telangana with an estimated investment of Rs 2,800 crore. Now it seems the company has shelved its plan for the Telangana unit.
Briefing media after the cabinet meeting, Union Minister Ashwini Vaishnaw said Kaynes Technology has already acquired land in Sanand, Gujarat for the project, and construction will start soon.
“The plant will come up in 46 acres, it is a big plant and a large portion of the production will go for Kaynes Industries, it has already been booked,” the minister said.
The chips produced in the proposed unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones.
“This unit, with the capacity of 60 lakhs chips per day, will add yet more thrust to Gujarat's fast-paced journey of being a Semicon hub of India,” said Gujarat Chief Minister Bhupendra Patel.
“I am glad that with the nation's first well-thought-out semiconductor policy and robust semiconductor supply chain ecosystem in place, Gujarat has become the most favoured state for semicon investors,” Patel said in a post on X.
As per an official statement released after the cabinet meeting, the approval for setting up a new semiconductor is under the India Semiconductor Mission. It is a part of the broader "Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India," which was announced in December 2021, with a total allocation of Rs 76,000 crore. The programme aims to position India as a global hub for semiconductor manufacturing.