The union cabinet on Monday approved a proposal by Kayness Semicon Pvt Ltd for setting up a Rs3,300-crore semiconductor manufacturing unit in Sanand, Gujarat.

The new facility, with a capacity of 6 million chips per day, will manufacture chips for a variety of applications including mobile phones, consumer electronics, industrial, automotive (including electric vehicles) and telecommunications, creating a vibrant semiconductor ecosystem.

The proposal, approved at a meeting of the union cabinet chaired by Prime Minister Narendra Modi on Monday, is part of the broader programme for the development of a semiconductor and display manufacturing ecosystem in India, announced on 21 December 2021.

The programme with an overall outlay of Rs76,000 crore, aims at positioning India as a global hub for electronic products, including semiconductors.

Besides the Sanand facility, the government had, earlier approved three other semiconductor projects, which include two semiconductor fab units by Tata Electronics – one in Dholera, Gujarat, and another in Morigaon, Assam – besides another semiconductor facility by CG Power also in Sanand, Gujarat.

The four semiconductor projects with a combined investment of nearly Rs1.5 lakh crore, will have a combined production capacity of around 70 million chips per day.