Central Government Approves New Chip Manufacturing Plant in Gujarat
Kaynes Technology, a prominent electronics manufacturing company based in Karnataka, has received approval from the central government to establish a semiconductor manufacturing unit in Gujarat. The Union Cabinet, led by Prime Minister Narendra Modi, has sanctioned this significant investment of Rs 3,300 crore. The new facility, located in Sanand near Ahmedabad, will have the capacity to produce 60 lakh chips daily, bolstering India’s semiconductor production capabilities.
Shift in Focus from Telangana to Gujarat
Last October, Kaynes Technology unveiled plans for an Outsourced Semiconductor Assembly and Test (OSAT) and compound semiconductor facility in Telangana with an estimated investment of Rs 2,800 crore. However, the company has now pivoted from this initiative to focus on the newly approved project in Gujarat. Union Minister Ashwini Vaishnaw confirmed that Kaynes Technology has secured 46 acres of land in Sanand for the plant, and construction is slated to begin shortly.
Boost to Gujarat’s Semicon Ambitions
The upcoming semiconductor unit will cater to diverse sectors including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones. Gujarat Chief Minister Bhupendra Patel highlighted the importance of this development, stating, “With this new unit capable of producing 60 lakh chips daily, Gujarat is accelerating towards becoming India’s semiconductor hub.” This approval falls under the India Semiconductor Mission, part of the larger “Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India,” which aims to establish India as a key player in the global semiconductor industry.
