The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a significant new investment for the semiconductor industry in India. Kaynes Semicon Pvt Ltd will establish a new semiconductor unit in Sanand, Gujarat, with an investment of Rs 3,300 crore. This unit is set to have a production capacity of 60 lakh chips per day, which will be used across various sectors such as industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

This approval marks the fifth semiconductor unit sanctioned under the Programme for Development of Semiconductors and Display Manufacturing Ecosystem, which was launched in December 2021 with a total budget of Rs 76,000 crore. Earlier this year, the Union Cabinet had also approved three additional semiconductor units: one by Tata Electronics in Dholera, Gujarat, another by Tata Electronics in Morigaon, Assam, and one by CG Power in Sanand, Gujarat.

The development of these units is advancing rapidly, with the four units expected to collectively attract nearly Rs 1.5 lakh crore in investment and achieve a combined production capacity of about 7 crore chips per day. Prime Minister Modi has underscored the strategic importance of boosting domestic semiconductor manufacturing for national security and innovation, expressing optimism that India will soon emerge as a global leader in this sector.

The governments Atmanirbhar and Make in India initiatives, including production-linked incentive (PLI) schemes, aim to enhance the competitiveness of Indian manufacturers, attract investments, boost exports, and decrease reliance on imports.

#WATCH | Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a semiconductor manufacturing unit by Kaynes Semicon Pvt Ltd in Sanand, Gujarat. This initiative aims to foster a robust semiconductor ecosystem in India.

The new unit will be set… pic.twitter.com/jbaAWqIDq8

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