Ahmedabad: The Union Cabinet has approved the establishment of fifth semiconductor unit in Sanand, Gujarat with an aim to create a robust semiconductor ecosystem in the country. The unit will be set up by Kaynes Semicon Pvt Ltd, with a total investment of ₹3,307 crore, the proposal for which has been authorized by the government. The establishment will have a capacity of producing 60 Lakh chips per day. The chips produced will have applications in segments including industry, automation, electric vehicles, consumer electronics, telecom, mobile phones, etc.
The government launched the India Semiconductor Mission (ISM) and the display manufacturing ecosystem in December 2021 with an outlay of ₹76,000 crore to meet India’s domestic manufacturing goals. This new unit in Sanand will be the fifth semiconductor unit to be established under the ISM and the second to be set up in the city. Together, these units will bring the total investment to ₹1,52,307 crore.
In June 2023, the government approved the first semiconductor unit in Sanand. In February 2024, three more semiconductor units were granted approval, under which Tata Electronics will set up a semiconductor fab in Dholera, Gujarat, and another unit in Morigaon, Assam. In addition, CG Power is set to build a semiconductor unit in Sanand, Gujarat. These four semiconductor units are expected to bring an investment of around ₹1.5 lakh crore with a cumulative capacity of producing 7 crore chips per day.
