PM to inaugurate ₹3,300cr chip facility in Gujarat next week
What's the story
Prime Minister Narendra Modi will inaugurate Kaynes Semicon's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on March 31. The ₹3,300 crore facility was approved by the Union Cabinet in September 2024 under the India Semiconductor Mission. Once operational, it is expected to produce around 60 lakh chips per day.
Industrial evolution
Sanand evolving from autos to semiconductors
The inauguration of Kaynes Semicon's facility comes amid a rapid industrial transformation in Sanand, which is evolving from an automobile manufacturing base to a semiconductor hub. Earlier this year, Micron Technology inaugurated a major facility in the region. Another unit by CG Semi has also been launched, making Sanand an important player in India's semiconductor ambitions.
Industry impact
Gujarat says Kaynes adds OSAT capabilities
The Gujarat government has said that the Kaynes facility will boost the semiconductor ecosystem by adding OSAT capabilities. This is a crucial part of the semiconductor value chain, involving testing and packaging chips before they are sent to end markets. PM Modi had earlier highlighted India's fast-paced execution in this sector, citing Micron's project which was completed in under 900 days, much faster than global standards.
Information
Semiconductor projects in Gujarat
Gujarat has emerged as a leader in the semiconductor sector, with four out of 10 major projects approved under the Center's semiconductor program. The state's rapid industrial evolution and strategic investments are making it a key player in India's ambition to become a global hub.