Kaynes Semicon plant in Gujarat

Cabinet approves ₹3,300 crore for Kaynes Semicon plant in Gujarat

The plant will receive investment support under the Union government’s scheme for setting up semiconductor fabs

The Union Cabinet on Monday (September 2, 2024) approved a semiconductor unit in Sanand, Gujarat to be set up by Kaynes Semicon Pvt Ltd.

The approval comes under the Indian Semiconductor Mission's Amended Scheme for Setting Up Semiconductor Factories, which provides for 50% financial support for capital investment. The plan entails an outlay of Rs 76,000 crore. The initial investment in the factories will be Rs 3,300 crore. 

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The factory's production capacity will be six million chips per day. "The chips produced at this facility will be used in a wide range of applications, including in industry, automotive, electric vehicles, consumer electronics, telecommunications, mobile phones and other sectors," the government said in a press release. 

The Centre had approved three semiconductor units earlier in February: Tata Electronics has got support for projects to set up a semiconductor plant in Dholera, Gujarat, and a semiconductor unit in Morigaon, Assam, while CG Power has got support to set up a semiconductor unit in Sanand.