Cabinet Under PM Modi's Leadership Approves ?3,300 Crore Semiconductor Plant

03 Sep 2024

The Union Cabinet, led by Prime Minister Narendra Modi, has approved Kaynes Semicon Pvt Ltd’s ?3,300 crore investment to set up a semiconductor manufacturing plant in Sanand, Gujarat. This facility, part of the India Semiconductor Mission (ISM), is expected to produce around 6 million chips daily, serving various sectors including automotive, consumer electronics, and telecom.

Prime Minister Modi highlighted India’s potential to develop homegrown chips for diverse applications, with the first domestically-produced chip projected to debut by the end of the year. Earlier this year, he also inaugurated three additional semiconductor projects worth ?1.25 lakh crore, involving Tata Electronics in Dholera and Morigaon, as well as CG Power in Sanand.

According to the Ministry of Electronics and IT, these initiatives are advancing rapidly and will create significant direct and indirect job opportunities. The total investment for these projects is anticipated to reach nearly ?1.5 lakh crore, with a combined output capacity of 70 million chips per day. India’s semiconductor market is forecasted to grow to $64 billion by 2026. Union Minister Ashwini Vaishnaw has stated that India aims to become a major global semiconductor hub within the next five years.