The project, approved by the Union Cabinet on September 23, 2024, under the India Semiconductor Mission, represents an investment of ₹3,300 crore. This OSAT unit will oversee the testing and packaging of semiconductor chips prior to their market release.
The facility is projected to produce 60 lakh chips daily, according to forecasts.
The Prime Minister has noted that the swift advancement of the semiconductor sector could mark this decade as a pivotal era for India’s technological future.
The launch of the Kaynes Semicon plant comes after the opening of a semiconductor facility by Micron Technology earlier this year. This new initiative is anticipated to further enhance local economic growth in the region.
During the inauguration of the Micron plant in February, Modi emphasized the speed of its development, pointing out 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 commenced by February 2026.
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He remarked that such processes often take years in developed countries, while India achieved the project’s completion in approximately 900 days.
Sanand has experienced a rapid industrial transformation recently. In addition to Micron Technology and Kaynes Semicon, another semiconductor facility is being established by CG Semi.
Once primarily an automotive manufacturing center, Sanand is now evolving into India’s inaugural chip packaging cluster and a significant link in the global semiconductor value chain.
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PM Modi stated that India’s goal is not just to set up semiconductor factories but to develop a comprehensive ecosystem that encompasses design engineers, machinery manufacturers, and logistics.
He added that the upcoming ‘India Semiconductor Mission 2.0’ will further expand the sector and enhance domestic demand for semiconductor materials and components.
