The project, cleared by the Union Cabinet on September 23, 2024, under the India Semiconductor Mission, involves an investment of ₹3,300 crore. The OSAT unit will handle the testing and packaging of semiconductor chips before they are supplied to the market.
The facility is expected to produce 60 lakh chips per day, according to estimates.
The Prime Minister has stated that the rapid development of the semiconductor sector could make this decade a defining period for India’s technology future.
The launch of the Kaynes Semicon plant follows the inauguration of a semiconductor facility by Micron Technology earlier this year. The new project is expected to further support local economic development in the region.
During the inauguration of the Micron plant in February, Modi highlighted the pace of its development. He noted that the MoU for the project was signed in June 2023, the foundation stone was laid in September of the same year, and commercial production began by February 2026.
Also read: Mann Ki Baat: PM Modi calls for public participation in manuscript preservation drive
He said such processes often take years in developed economies, but India completed the project in around 900 days.
Sanand has witnessed a rapid industrial transformation in recent years. Besides Micron Technology and Kaynes Semicon, another semiconductor facility is being set up by CG Semi.
Once known mainly as an automobile manufacturing hub, Sanand is now emerging as India’s first chip packaging cluster and an important node in the global semiconductor value chain.
Also read: PM Modi on Micron’s Semiconductor ATMP plant in Gujarat: ‘It will strengthen India’s role in the global chain’
PM Modi said India’s aim is not only to establish semiconductor factories but to build a complete ecosystem covering design engineers, machinery manufacturers and logistics.
He added that the proposed ‘India Semiconductor Mission 2.0’ will help expand the sector further and boost domestic demand for semiconductor materials and components.
