In a significant push to India’s semiconductor journey, Prime Minister Narendra Modi on Monday inaugurated Kaynes Semicon’s ₹3300 crore outsourced semiconductor assembly and test (OSAT) facility at Sanand in Gujarat, highlighting its role in connecting India to global technology hubs.
Describing the development as a major milestone, Modi said, “India’s own company Kaynes has become a strong part of the global semiconductor supply chain. It is a proud moment for all Indians.” He added, “Today in a way, a new bridge between Sanand and Silicon Valley. This plant in Sanand will supply Intelligent Power Modules for a company in California. I am told that a large consignment of the chips manufactured here has been booked for exports. The modules made in Sanand will reach companies in the US and will help power the entire world.”
Located near Ahmedabad, the facility is expected to produce around 60 lakh chips per day once fully operational. A few months ago, Kaynes Semicon had announced that it shipped 900 Multi-Chip Modules (IPM5), assembled and tested at the Sanand plant, to Alpha & Omega Semiconductor (AOS), USA.
The project, approved under the India Semiconductor Mission, reflects India’s growing focus on domestic chip manufacturing. Union IT minister Ashwini Vaishnaw noted that the plant began commercial production in just 14 months.
Modi also emphasised that the Intelligent Power Modules produced here will support India’s electric vehicle ecosystem and heavy industries. He highlighted that India’s semiconductor market, currently valued at about $50 billion, is projected to cross $100 billion by the end of the decade. “Our target is to manufacture the maximum number of semiconductor chips in India,” he said.
Sanand is quickly emerging as a semiconductor hub, marking its third major development in the sector. Earlier this year, a semiconductor facility by Micron Technology was inaugurated in Gujarat, while a pilot plant by CG Semi was launched last year.
On the occasion of Mahavir Jayanti, Modi also inaugurated the Samrat Samprati Museum at Koba Tirth in Gandhinagar, showcasing Jain heritage, rare relics, and cultural artefacts.
On Tuesday, Indiesemic Pvt Ltd signed an MoU with Kaynes Semicon to develop a framework for the qualification, assembly, and testing of QFN40, QFN64, and other semiconductor packages. The partnership aims to build a scalable manufacturing pathway for ultra-low power System-in-Package modules and SoCs.
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