The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to Kaynes Semicon Pvt Ltd for establishing a new semiconductor unit in Sanand, Gujarat.
This unit represents India’s fifth semiconductor facility and is part of the country’s efforts to build a robust semiconductor ecosystem.
The planned investment for this unit is Rs 3,300 crore. It will have the capacity to produce 60 lakh chips per day. These chips will be used in various applications, including industrial systems, automotive technology, electric vehicles, consumer electronics, telecom equipment, and mobile phones.
This development is in line with the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was introduced on December 21, 2021. This programme has a total budget of Rs 76,000 crore.
In June 2023, the Union Cabinet approved the first semiconductor unit in Sanand, Gujarat. Following this, in February 2024, three more units received approval.
Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and another unit in Morigaon, Assam. Additionally, CG Power is building a semiconductor unit in Sanand, Gujarat.
Construction of these four semiconductor units is advancing quickly, contributing to a growing semiconductor ecosystem in the area.
Together, these units will attract an investment of nearly Rs 1.5 lakh crore and will have a combined production capacity of around 7 crore chips per day.
In the same cabinet meeting, the government also approved a Rs 13,966 crore package aimed at boosting the agriculture sector and enhancing food security across the country.
Union Minister Ashwini Vaishnaw, who announced the decisions at a press conference on Monday, said that seven major projects were given the green light.
Vaishnaw said, “Today, Seven major decisions have been taken in the cabinet meeting for improving the lives of farmers and increasing their income…The first is Digital Agriculture Mission. This is being developed on lines of the structure of Digital Public Infrastructure for agriculture. A few good pilot projects have been taken up and we have achieved success. On that basis, with a total investment of Rs 20,817 Crores, Digital Agriculture Mission will be set up…”
