In a bid to develop a vibrant semiconductor ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a proposal by Kaynes Semicon Pvt Ltd to set up a new semiconductor unit in Sanand, Gujarat.
The proposed unit will be established with an investment of Rs 3,300 crore and will have a capacity of 60 lakh chips per day. The chips produced will cater to a wide range of applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
This is the fifth semiconductor unit to be approved under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was notified in December 2021 with a total outlay of Rs 76,000 crore.
Earlier this year, the Union Cabinet had approved proposals for setting up three more semiconductor units – one by Tata Electronics in Dholera, Gujarat, one by Tata Electronics in Morigaon, Assam, and one by CG Power in Sanand, Gujarat.
Construction of these semiconductor units is progressing at a rapid pace, and a robust ecosystem is emerging around them. Together, the four units under development are expected to attract an investment of almost Rs 1.5 lakh crore and have a cumulative capacity of about 7 crore chips per day.
Prime Minister Narendra Modi has emphasized the importance of indigenous semiconductor manufacturing for national security and to spur local innovation. He laid the foundation stones for the three semiconductor plants earlier this year, expressing hope that India will soon become a global power in this sector.
The government’s Atmanirbhar and Make in India initiatives have included production-linked incentive (PLI) schemes in various sectors, including electronics, to boost the competitiveness of Indian manufacturers, attract investments, enhance exports, and reduce dependency on imports.
(Inputs from ANI)
