Kaynes Semicon will set up a semiconductor unit in Gujarat, producing 60 lakh microchips daily

Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a semiconductor unit in Morigao, Assam. CG Power is setting up a semiconductor unit in Sanand, Gujarat.

The central government has approved Kaynes Semicon Private Limited’s proposal to set up a semiconductor unit in Sanand, Gujarat, under the India Semiconductor Mission (ISM) to develop a vibrant semiconductor ecosystem in the country. This is the second proposal approved for the semiconductor sector in Sanand. Earlier, in June 2023, the central cabinet had approved the first proposal to set up a semiconductor unit in Sanand. In February 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a semiconductor unit in Morigao, Assam. CG Power is setting up a semiconductor unit in Sanand, Gujarat.

The Prime Minister Narendra Modi-led central cabinet meeting on Monday approved the proposal. The cabinet’s decision was informed by the Information and Broadcasting Minister Ashwini Vaishnav, who stated that the proposed unit would be set up with an investment of ₹3,300 crores. These four units will bring in an investment of around ₹1.5 lakh crores. The unit’s capacity will be to produce 60 lakh microchips daily. The chips produced in this unit will cater to various applications, including industrial, automotive, electric vehicles, consumer electronics, telecommunications, mobile phones, and others. The scheme for the development of a conducive ecosystem for semiconductor and display manufacturing units was notified on December 21, 2021, with a total outlay of ₹76,000 crores.

Four companies will produce 7 crore chips daily

The central government has stated that all four semiconductor units are progressing rapidly and a strong semiconductor ecosystem is emerging. These four units will bring in an investment of around ₹1.5 lakh crores. The cumulative capacity of these units will be around 7 crore chips daily.