Rs 3,300 crore Gujarat chip unit to strengthen India’s tech ambitions

New Delhi: Prime Minister Narendra Modi will inaugurate a Rs 3,300 crore semiconductor facility by Kaynes Semicon in Gujarat’s Sanand on March 31, marking a significant step in India’s chip manufacturing push.

The outsourced semiconductor assembly and test (OSAT) unit, approved by the Union Cabinet in September 2024 under the National Semiconductor Mission, will handle testing and packaging of chips, an essential stage in the semiconductor value chain. The plant is expected to produce around 60 lakh chips per day.

Sanand, traditionally an automobile manufacturing hub, is rapidly emerging as a semiconductor cluster. The Kaynes facility follows the launch of a unit by Micron Technology in February, with another project by CG Semi also underway. Together, these developments signal a growing concentration of chip-related investments in the region.

The Gujarat government, led by Bhupendra Patel, is actively positioning the state as a semiconductor hub, aiming to boost advanced manufacturing and economic activity.

Modi has emphasised building a complete semiconductor ecosystem in India, spanning design, manufacturing, and supply chains. He noted that rapid execution of projects reflects policy clarity and commitment.

So far, 10 projects have been approved under the Semicon India programme, including four in Gujarat, reinforcing Sanand’s emergence as a key node in India’s semiconductor ambitions.