Gujarat approves ₹3,300 crore chip plant investment by Kaynes Semicon

India is making significant progress in establishing itself as a global semiconductor hub, with the Union Cabinet approving Kaynes Semicon Private Limited's plan to build a semiconductor packaging plant in Sanand, Gujarat. This facility will occupy approximately 46 crore and is backed by an investment of Rs 3,300 crore. The plant is expected to have a production capacity of 6.3 million chips daily, contributing to the growing semiconductor ecosystem in the region. The initiative is part of a broader strategy known as the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India, which was announced in December 2021 with a total budget of Rs 76,000 crore. This program aims to enhance India's capabilities in semiconductor manufacturing and reduce dependency on imports. In addition to Kaynes Semicon, the Union Cabinet has approved several other semiconductor projects, including Tata Electronics' semiconductor fab in Dholera, Gujarat, and CG Power's unit in Sanand. These developments are expected to attract a cumulative investment of nearly Rs 1.5 lakh crore and will collectively produce around 7 crore chips per day. The rapid construction of these semiconductor units is indicative of a robust ecosystem emerging in Gujarat, which is poised to play a crucial role in the global semiconductor supply chain. The successful establishment of these facilities is anticipated to bolster India's position in the semiconductor market and create numerous job opportunities in the region.