India’s Semiconductor Mission Gains Momentum with New Semicon Unit

India in a decisive move to participate in the global semiconductor arena, has flared the green flag to Kaynes Semicon Pvt Ltd to establish a cutting-edge semiconductor unit in Sanand, Gujarat. This unit marks the fifth major project under the ambitious India Semiconductor Mission (ISM). This strategic initiative reinforces the nation’s commitment to become a dominant player in the semiconductor industry.

Strategic Investment in Sanand

The newly approved unit by Kaynes Semicon will be developed with an investment of ₹3,307 crore (approximately $394.15 million). This facility will have the capacity to produce an impressive 6 million chips per day, catering to a wide array of industries, including automotive, electric vehicles, consumer electronics, telecom, and mobile phones.  This development is a key milestone in India’s quest to establish a robust semiconductor manufacturing ecosystem, which is crucial for advancing the nation’s domestic manufacturing capabilities.

Kaynes Semicon has set an ambitious timeline, aiming to deliver its first packaged chip for a paying customer by 31 March 2025. While the company expects to generate initial revenue within the current fiscal year, the primary financial impact is projected for the following year.

Expanding India’s Semiconductor Footprint

The approval of Kaynes Semicon’s unit is part of a broader, concerted effort under the India Semiconductor Mission, launched in December 2021 with an initial outlay of ₹76,000 crore ($9.08 billion). This mission has already seen the approval of four other semiconductor units, each contributing to a growing ecosystem that is expected to bring in investments totaling nearly ₹1.5 lakh crore ($18.15 billion).

Sanand is rapidly emerging as a critical hub within this ecosystem, with Kaynes Semicon’s project being the second semiconductor unit approved in the area. This follows the earlier sanctioning of an ATMP (assembly, testing, marking, and packaging) facility by Micron, an American company that has committed $2.75 billion to its Gujarat plant. The Micron facility, which began construction in September 2023, is on track to produce India’s first domestically-made semiconductor chip by mid-2025.

Kaynes Semicon’s project is underpinned by strategic partnerships with global technology leaders, ensuring that the unit will operate with state-of-the-art capabilities. The company has forged alliances with Globetronics from Malaysia, Aptos Technology (a subsidiary of Taiwan Mask Corporation), and AOI from Japan. These partnerships will bring essential technical expertise and advanced know-how to establish world-class packaging and testing facilities in India.

In parallel, Kaynes Semicon has been proactive in building a skilled workforce, already hiring 35 key personnel and extending offers to 15 expatriates from the Philippines, Thailand, Malaysia, and Japan. The company has also signed Memorandums of Understanding (MoUs) with leading universities to recruit engineers and diploma holders, aiming to have 500 employees on board by March 2025.

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