Cabinet approves Kaynes chip assembly, packaging unit worth Rs 3,307 crore | News
 "Ashwini Vaishnaw, Ashwini, Vaishnaw, Railway minister")
Union Minister Ashwini Vaishnav (File Photo: PTI)
The Union Cabinet on Monday approved India’s fifth semiconductor facility, to be established by Kaynes Technology in Sanand, Gujarat. This Assembly, Testing, Marking, and Packaging (ATMP) unit will involve a total investment of Rs 3,307 crore and will have the capacity to produce 6.3 million chips per day.
“Today, the Cabinet has approved the Kaynes Technology plant, which has a capacity of producing 6.3 million chips per day. It is a big plant that is spread over 46 acres, and the production is expected to be large. The industries to which chips from this plant will go… that has already been booked,” said Union Minister of Electronics and IT Ashwini Vaishnaw in a press briefing post the Cabinet meeting today.
A majority of the chips produced in the plant will be used in power-related equipment for train sets, automobiles, and home appliances, said the minister.
The Kaynes ATMP project is the fifth semiconductor unit to be approved under the Rs 76,000 crore India Semiconductor Mission (ISM), after the Micron, Tata, and CG Power facilities in Gujarat, and another project by Tatas in Assam, that were approved earlier.
In June 2023, the Union Cabinet had approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat, by the US-based memory chip giant Micron.
In February this year, three more semiconductor units were approved, wherein Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and one testing and assembly unit in Morigaon, Assam.
Further, CG Power is also setting up an outsourced semiconductor assembly and test (OSAT) unit in Sanand, Gujarat.
“Construction of all four semiconductor units is progressing at a rapid pace, and a robust semiconductor ecosystem is emerging near the units. These four units will bring an investment of almost Rs 1.5 lakh crore. The cumulative capacity of these units is about 7 crore chips per day,” read an official press release from the government.
Vaishnaw also gave an update on the Micron facility that was the first to be approved under the ISM in June last year. He said that the construction at the facility was progressing well and the first made-in-India chip out of the facility was expected by mid-2025.
Industry body India Electronics and Semiconductor Association (IESA) thanked the Ministry of Electronics and IT and ISM for their support in the approval of the Kaynes semiconductor project.
“With upcoming initiatives from Tata, Micron, Renesas, Kaynes, and others, we are gaining momentum in developing a comprehensive semiconductor ecosystem in India. This will not only support the local electronics industry but also meet the anticipated global semiconductor demand, projected to reach $1 trillion by 2030,” said Ashok Chandak, president, IESA.
Kaynes Technology has a presence in IoT solutions-enabled integrated electronics manufacturing.
First Published: Sep 02 2024 | 5:56 PM IST
