NEW DELHI: The Cabinet chaired by PM Narendra Modi on Monday approved a proposal for setting up a semi-conductor unit in Sanand, Gujarat, the fifth such private sector unit okayed since India launched the ‘programme for the development of semiconductors and display manufacturing ecosystem’ in 2021.
All smartphones, laptops, smart TVs, cars, air conditioners, military hardware, planes, satellites, engines, missiles, life-saving devices and CT scans, among other equipment, use semi-conductors.
The Cabinet today okayed the proposal of Kaynes Semicon Pvt Ltd to setup a semiconductor unit with an investment of Rs 3,300 crore. “The capacity of this unit will be 60 lakh chips per day,” a government statement said.
In June 2023, the Cabinet had approved the first proposal for setting up a semiconductor unit of US company Micron at Sanand. “This unit will start production in 2025,” Minister of Electronics and IT Ashwani Vaishnaw said.
Chips produced in Kaynes unit will cater to a wide variety of applications, including segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc. In February 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and another in Morigaon, Assam. CG Power is setting up a unit in Sanand.
These plants will address multiple layers of the semi-conductor market. The focus on making semiconductors in India is part of the focus of the Quad grouping constituted by India, US, Japan and Australia.
Meanwhile, the Cabinet also approved 309 km railway line between Manmad in Maharashtra and MP’s Indore, with a total outlay of Rs 18,036 crore. The Cabinet Committee on Security approved a proposal for procurement of 240 engines to power Sukhoi-30 MKI fighters jets in IAF inventory.