NEW DELHI: The government on Monday approved a proposal by Kaynes Semicon Pvt Ltd to set up a semiconductor assembly and testing plant in Sanand, Gujarat. The plant, which will be established at a cost of Rs 3,300 crore, is the fifth plant to be set up under India’s Semiconductor Mission.
The government launched the mission in December 2021 with an outlay of Rs 76,000 crore to make the country a semiconductor manufacturing hub. So far, the government has approved four applications for assembly units and one for chip manufacturing.
“The semiconductor mission is a program for at least 10 years. The industry is going to be crucial for industrial production in the country. We have a large automobile and electronic manufacturing industry up in the country.
A large number of appliances are now manufactured in India. So, the success of Make in India requires that the foundational industry should also be present in our country,” Union Minister of the Ministry of Electronics and Information Technology (MeitY) Ashwini Vaishnaw said on Monday.
The plant will produce 60 lakh chips per day, and will cater to a wide variety of applications, including segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
Kaynes Semicon, an arm of Karnataka-based Kaynes Technology, had applied for setting up its OSAT (Outsourced Semiconductor Assembly and Test) plant in Telangana under the government’s semiconductor mission scheme last year.
According to a post on social media platform X by Chief Minister’s office of Telangana on 19 August 2024, Kaynes CEO Raghu Panicker had announced a new OSAT unit, pending approval from the Indian Semiconductor Mission (ISM) in Telangana.
However, on Monday the company announced that it is coming up with an OSAT plant in Sanand, where other chip makers, Micron and Murugappa Group’s CG Power, have already announced their units.
Vaishnaw also mentioned that soon the government will come up with a second round of Production-Linked Incentives for the semiconductor industry. So far, the Ministry of Electronics and Information Technology has approved a fabrication plant worth $11 billion being set up by Tata Electronics in partnership with Taiwan’s Powerchip, and three different chip assembly plants being set up by the Tatas, US-based Micron Technology, and Murugappa Group’s CG Power in partnership with Japan’s Renesas.