Cabinet approves new semiconductor plant in Gujarat

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of Kaynes Semicon Pvt Ltd to establish a semiconductor unit in Sanand, Gujarat. The unit will be set up with an investment of INR 3,300 crore and will have a production capacity of 60 lakh chips per day.

The chips produced at this facility will serve various applications, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones.

The Programme for the Development of Semiconductors and Display Manufacturing Ecosystem in India was announced on December 21, 2021, with a total budget of INR 76,000 crore. In June 2023, the Union Cabinet approved the first semiconductor unit in Sanand, Gujarat. In February 2024, three more semiconductor units were approved: one by Tata Electronics in Dholera, Gujarat, another in Morigaon, Assam, and one by CG Power in Sanand, Gujarat.

Construction of these four semiconductor units is ongoing, contributing to the development of a semiconductor ecosystem in their respective locations. The combined investment for these units is approximately INR 1.5 lakh crore, with a total production capacity of around 7 crore chips per day.

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