With the aim to make a vibrant semiconductor ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi on September 2, approved the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat.
Notably, the proposed unit will be set up with an investment of Rs 3,300 crore. According to the official release, the capacity of this unit will be 60 lakh chips per day. The chips produced in this unit will cater to a wide variety of applications which include segments like industrial, automotive, electric vehicles, consumer electronics, telecom and mobile phones.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on December 21 2021 with a total outlay of Rs 76,000 crore.
The Union Cabinet had approved a proposal for setting up a semiconductor in Sanand, Gujarat in June 2023. In February, 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam. CG Power is setting up one semiconductor unit in Sanand, Gujarat.
Construction of semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. They will bring an investment of almost Rs 1.5 lakh crore and cumulative capacity of these units is about 7 crore chips per day.
Tata Group hopes that the commercial production of semiconductors chips at the two plants in Gujarat and Assam, would start in 2026. Chip shortages during Covid highlighted importance of manufacturing to fill the deficiency for national security and also to galvanise indigenous innovation. American chip maker Micron’s high-end semiconductor fabrication plant at Gujarat’s Sanand, which is India’s first, is coming up at a rapid pace.
In total, work on four semiconductor units is currently underway- 3 in Gujarat and 1 in Assam. Semiconductors are crucial for modern socirty and are needed for manufacturing an array of devices including phones, medical devices, cars and electronic gadgets.
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