PM Modi-Led Cabinet Approves Rs 3,300 Crore Semiconductor Manufacturing Unit

A proposal by Kaynes Semicon Pvt Ltd to set up semiconductor unit in Sanand, Gujarat, with investment of Rs 3,300 crore was cleared by the Union Cabinet, headed by Prime Minister Narendra Modi on Monday. The proposed unit under India Semiconductor Mission will produce close to 60 lakh chips per day. The chips manufactured at this plant will cater to diversified markets, including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones, among others.

PM Modi said, "The country has the potential to fulfil the dream of developing a 'Made in India' chip for every piece of equipment." The country is expected to get its first indigenously-developed chip by the end of this year.

The Prime Minister laid the foundation stone for three such semiconductor projects worth Rs 1.25 lakh crore last March. Tata Electronics is setting up a fab in Dholera, Gujarat, and one semiconductor unit in Morigaon, Assam. CG Power is setting up one semiconductor unit in Sanand. Together, these units will generate employment of lacs in both direct and indirect ways.

An official release from the Ministry of Electronics and IT said that construction of all the four units of semiconductor units is in full swing, and a strong semiconductor ecosystem is taking shape around the units.

"These four units will result in an investment of almost Rs 1.5 lakh crore. The cumulative capacity of these units is about 7 crore chips per day," the ministry said.

Government notified the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India in 2021 with a total outlay of Rs 76,000 crore.

Reports indicate that the Indian semiconductor-related market, which will reach $64 billion in 2026, was almost three times bigger compared with 2019. Union Railways and IT Minister Ashwini Vaishnaw said recently that in the next five years, the country will turn to one of the largest semiconductor hubs in the world.