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The Union Cabinet on Monday approved India's fifth semiconductor facility, to be established by Kaynes Technology in Sanand, Gujarat.
This assembly, testing, marking, and packaging (ATMP) unit will involve a total investment of Rs 3,307 crore and have the capacity to produce 6.3 million chips per day.
“The Cabinet has approved the Kaynes Technology plant. It is a big plant that is spread over 46 acres, and production is expected to be huge. The industries to which chips from this plant will go have already been booked,” said Union Minister of Electronics and IT Ashwini Vaishnaw at a press briefing, post the Cabinet meeting.
Majority of chips produced in the plant will be used in power-related equipment for train sets, automobiles, and home appliances, said the minister.
The Keynes ATMP project is the fifth semiconductor unit to be approved under the Rs 76,000-crore India Semiconductor Mission (ISM).
It comes after the Micron, Tata, and CG Power facility in Gujarat and another project by the Tatas in Assam that were approved earlier.
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In June, 2023, the Cabinet had approved the first proposal for setting up a semiconductor unit in Sanand by US-based memory chip giant Micron.
In February this year, three more semiconductor units got approval. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and one testing and assembly unit in Morigaon, Assam. Further, CG Power is also setting up an outsourced semiconductor assembly and test (OSAT) unit in Sanand.
“Construction of all four semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. These four units will bring an investment of almost Rs 1.5 trillion. The cumulative capacity of these units is about 70 million chips per day,” said an official press release from the government.
Vaishaw said the Micron facility construction was going on at a good pace and the first made-in-India chip is expected to roll out by mid-2025.
Industry body India Electronics and Semiconductor Association (IESA) thanked the Ministry of Electronics and IT and ISM for their support in approval of the Kaynes’ project
“With upcoming initiatives from Tata, Micron, Renesas, Kaynes, and others, we are gaining momentum for a comprehensive semiconductor ecosystem in India. This will not only support the local electronics industry but also meet the anticipated global semiconductor demand, projected to reach $1 trillion by 2030,” said Ashok Chandak, president, IESA.
Kaynes has a presence in Internet of Things (IoT) solutions-enabled integrated electronics manufacturing.
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