Union Cabinet Approves Rs 3,300 Crore Semiconductor Unit In Gujarat

In a significant boost to India’s semiconductor industry, the Union Cabinet, led by Prime Minister Narendra Modi, has greenlit a proposal by Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat.

The project, which represents an investment of Rs 3,300 crore, is a key part of the India Semiconductor Mission (ISM).

The upcoming facility in Sanand will have the capacity to produce approximately 6 million semiconductor chips daily, serving a wide range of industries including automotive, electric vehicles, consumer electronics, telecom, and mobile devices.

This initiative aligns with the government’s vision of making India a global hub for semiconductor manufacturing, fulfilling the ambition of producing a ‘Made In India’ chip for every device.

Prime Minister Modi emphasized the country’s potential in the semiconductor sector, highlighting that the first domestically developed chip is likely to be available by the end of this year.

PM Modi laid the foundation for this ambitious push in March by inaugurating three semiconductor projects with a total investment of Rs 1.25 lakh crore.

These projects include a semiconductor fabrication unit by Tata Electronics in Dholera, Gujarat, and another in Morigaon, Assam.

Additionally, CG Power is setting up a semiconductor unit in Sanand. Collectively, these units are likely to create numerous direct and indirect jobs, contributing to the growth of a robust semiconductor ecosystem in India.

Ministry Reports Rapid Progress On Chip Facilities, Projected 70 Million Daily Production Capacity

The Ministry of Electronics and IT reported that the construction of these facilities is progressing rapidly, with a cumulative daily production capacity estimated at 70 million chips once all units are operational.

Meanwhile, these projects are likely to attract nearly Rs 1.5 lakh crore in total investment.

India’s push into semiconductor manufacturing is part of a broader strategy under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem, launched in 2021 with an outlay of Rs 76,000 crore.

This program however aims to position India as a major player in the global semiconductor market, which is expected to reach $64 billion by 2026, nearly three times its size in 2019.

Union Railways and IT Minister Ashwini Vaishnaw recently expressed confidence that India will emerge as one of the world’s leading semiconductor hubs within the next five years, underscoring the strategic importance of these developments for the nation’s technological and economic future.

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