Cabinet approves ₹3,300 crore Kaynes ATMP chipmaking plant in Gujarat

The Union Cabinet chaired by Prime Minister Narendra Modi approved Kaynes Semicon Pvt. Ltd plans to set up its Kaynes ATMP semiconductor unit in Sanand, Gujarat, on Tuesday, September 2. The project is estimated to be set up with an investment of nearly ₹3,300 crore, according to the government's press release.

The semiconductor plant will have a capacity of 6.3 million chips, or more than 60 lakh chips manufactured daily. The project will cover an area of 46 acres, and the land has been acquired in Sanand, Gujarat.

“Chips produced in this unit to cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc,” according to the press release.

This move from the government comes as a step towards India's Semiconductor Mission. The government's Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India plan was notified in December 2021, with a total outlay of ₹76,000 crore, according to the press release.

The cabinet approved the first proposal to set up a semiconductor plant in Sanand, Gujarat, in June 2023. In February 2024, the cabinet approved three semiconductor units: a Tata Electronics unit in Dholera, Gujarat, and one in Morigaon, Assam. CG Power is also setting up a semiconductor unit in Sanand, Gujarat, according to the Cabinet press statement.

The government highlighted the semiconductor unit's cumulative capacity of making nearly 7 crore chips per day. These four units are to bring an investment close to ₹1.5 lakh crore, as per the press release.

“Construction of all 4 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. These 4 units will bring an investment of almost ₹1.5 Lakh crore. The cumulative capacity of these units is about 7 crore chips per day,” according to the Cabinet's press release on Tuesday, September 2.