PM Modi inaugurates Rs 3,300 crore Kaynes semiconductor plant in Gujarat

On March 31, Prime Minister Narendra Modi officially launched the Kaynes Semicon semiconductor plant, a monumental investment of ₹3,300 crore, located in Sanand GIDC, Ahmedabad. This event marks a significant advancement in India's strategy to establish a robust domestic semiconductor manufacturing sector. The newly inaugurated facility is designed for outsourced semiconductor assembly and testing (OSAT) and has already begun commercial operations. This plant will specialize in crucial aspects of the semiconductor value chain, including assembly, packaging, and testing. PM Modi emphasized the role of Kaynes, an Indian enterprise, in strengthening the global semiconductor supply network, stating, "In the near future, numerous Indian companies will contribute to a resilient semiconductor supply chain worldwide. With production commencing here, India is confirming its status as a reliable semiconductor supplier." This Sanand facility is the second operational semiconductor plant in India, following the earlier opening of a Micron Technology facility this year. PM Modi remarked, "A new connection has been forged between Sanand and Silicon Valley. I've been informed that a significant portion of the products manufactured here is earmarked for export. The mantra 'Make in India, Make for the World' will resonate globally." The Kaynes plant has commenced production with Intelligent Power Modules (IPMs), which are essential for electric vehicles, industrial applications, and energy-efficient devices. These modules amalgamate multiple chips into a single unit, enhancing both performance and efficiency. Once fully operational, the facility is projected to achieve a production capacity of approximately 6.3 million units daily, meeting both local demand and international requirements, including those of foreign semiconductor companies. This development aligns with India's objective to decrease its reliance on semiconductor imports and foster local value addition. The OSAT sector, while it does not include wafer fabrication, is critical for downstream manufacturing and product integration. PM Modi also highlighted the nation’s efforts to establish a stable supply chain for raw materials, mentioning India's participation in PAC Silica as part of this initiative. He stated, "Our goal is to secure a supply chain within India in partnership with our global allies." The India Electronics and Semiconductor Association (IESA) welcomed the inauguration, citing it as a landmark achievement in India's semiconductor journey. Ashok Chandak, President of IESA and SEMI India, remarked that this facility signifies a shift from mere intentions to actual implementation in the semiconductor field. He noted that the launch, coordinated with the commercial rollout of the Multi-Chip Intelligent Module (MCM), highlights India's growing capabilities in advanced packaging, system integration, and scalable semiconductor production. Chandak affirmed that the facility marks a critical transition from design to advanced assembly, testing, and packaging (ATMP), promising to enhance domestic manufacturing while stimulating local economic growth and supporting related industries. With aspirations of developing a $400 billion electronics market and a $103 billion semiconductor market by 2030, India is on a committed path towards achieving these ambitious goals, demonstrating a clear trajectory of sustained progress in the semiconductor sector.