Prime Minister Narendra Modi on Tuesday inaugurated Kaynes Semicon’s outsourced semiconductor assembly and test (OSAT) facility at Sanand. The development follows the earlier inauguration of a semiconductor facility by Micron Technology in the same region this year.
The project, approved by the Union Cabinet on September 23, 2024, under the India Semiconductor Mission, involves an investment of Rs 3,300 crore. The facility will handle the testing and packaging of semiconductor chips before they are supplied to the market.
“With the commencement of production in this project, India is further strengthening its role as a reliable semiconductor supplier in the global market. In a sense, a new bridge has emerged today between Sanand and Silicon Valley; the plant in Sanand is now supplying Intelligent Power Modules to a company based in California,” the prime minister said.
Modi noted that India launched the Semiconductor Mission in 2021 as more than just an industrial policy, describing it as a declaration of the country’s confidence.
“India launched Semiconductor Mission 2 in the last budget to make the country self-reliant in every sector of production,” he added.
The plant is expected to produce 60 lakh chips per day and cater to a wide range of sectors, including industrial applications, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.
Karnataka-based Kaynes Technology, through its subsidiary Kaynes Semicon, had applied to set up the OSAT facility under the government’s semiconductor mission.
Under the India Semiconductor Mission, the government has so far approved 10 major semiconductor manufacturing projects, with a cumulative investment of around Rs1.60 lakh crore across six states. India’s semiconductor push began in December 2021 with an allocation of ₹Rs76,000 crore in incentives to attract investments. Finance Minister Nirmala Sitharaman, in her Budget speech on February 1, announced the launch of the second phase of the mission to further strengthen the semiconductor ecosystem.