New Semiconductor Unit

• 04 Sep 2024

On 2nd September 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new semiconductor unit by Kaynes Semicon Pvt Ltd in Sanand, Gujarat, as part of the India Semiconductor Mission (ISM).

Key Points

• New Semiconductor Unit: The unit will be set up in Sanand, Gujarat, with an investment of Rs. 3,300 crore and will produce 60 lakh chips per day.
• Diverse Applications: The chips from this unit will serve sectors like industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
• Government Initiative: The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was launched in December 2021 with a Rs. 76,000 crore outlay.
• Prior Approvals: In June 2023, the first semiconductor unit in Sanand was approved, followed by three more approvals in February 2024.
• Ongoing Developments: Construction of the four approved semiconductor units is progressing rapidly, creating a strong semiconductor ecosystem.
• Significant Investment: The four units will bring in a combined investment of Rs. 1.5 lakh crore and produce a total of 7 crore chips daily.