The Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the proposal of Kaynes Semicon Pvt Ltd to set up a semiconductor unit in Sanand, Gujarat, with an investment of ₹ 3,300 crore. The proposed unit, under the India Semiconductor Mission (ISM), will produce nearly 60 lakh chips per day and will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom and mobile phones, etc.
PM Modi remarked that the country has the potential to fulfil the dream of developing a 'Made in India' chip for every piece of equipment. The first indigenously-developed chip is set to arrive in the country by the end of this year.
In March, PM Modi laid the foundation stone of three semiconductor projects worth $1.25 lakh crore. While Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam, CG Power is setting up one semiconductor unit in Sanand. These units will reportedly produce lakhs of direct and indirect jobs.
The Ministry of Electronics and IT said that the construction of all the semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units.
"These four 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 ministry.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified in 2021 with a total outlay of ₹ 76,000 crore.
As per reports, India's semiconductor-related market will reach $64 billion in 2026, nearly triple the size in 2019.
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