Kaynes Semicon's ₹3,300cr plant starts chip production in Gujarat
What's the story
Prime Minister Narendra Modi has inaugurated the new Outsourced Semiconductor Assembly and Test (OSAT) facility of Kaynes Semicon in Sanand, Gujarat. The ₹3,300 crore facility is a major step toward strengthening India's position in the global semiconductor supply chain. Modi called it a bridge between Sanand and Silicon Valley, highlighting its significance for India's tech future.
Capacity
Production capacity and global supply chain integration
The newly inaugurated OSAT facility has the potential to produce a whopping 60 lakh chips every day. Modi emphasized that this is a proud moment for all Indians as Kaynes Semicon has become an integral part of the global semiconductor supply chain. He further noted that Intelligent Power Modules manufactured at this plant will be exported to California, US, contributing significantly to India's electric vehicle ecosystem and heavy industries.
Milestone
OSAT facility and India's semiconductor mission
The establishment of the OSAT facility, approved under the India Semiconductor Mission, is a major milestone in India's efforts to develop domestic chip manufacturing capabilities. Union IT Minister Ashwini Vaishnaw said that the plant started commercial production within just 14 months, showcasing accelerated execution in this sector. Modi also highlighted that India's semiconductor market is likely to double from $50 billion to $100 billion by 2029.
Industrial evolution
Sanand emerging as semiconductor manufacturing hub
The inauguration of Kaynes Semicon's facility is the third major semiconductor-related development in Sanand. The region is fast transforming from an automobile hub into a semiconductor manufacturing cluster. Earlier this year, Modi had inaugurated Micron Technology's semiconductor facility in Gujarat and last year, CG Semi's pilot plant was also inaugurated. These developments are making Sanand an important player in India's chip manufacturing ecosystem.