Prime Minister Narendra Modi on Tuesday inaugurated Kaynes Semicon's Rs 3,300 crore semiconductor plant at Sanand GIDC in Ahmedabad.
The inauguration of the Kaynes Semicon Plant is a major step under the India Semiconductor Mission (ISM). It will be the second semiconductor facility, after Micron Technology, among the approved projects under the programme to commence commercial production.
The plant is expected to strengthen India's manufacturing capabilities and accelerate the government's broader vision of making the country a major hub for chip production.
"The inauguration of the Kaynes Semicon facility strengthens India's push towards self-reliance. It marks an landmark step in building a robust semiconductor ecosystem," said PM Modi in a post on X.
"Today, Kaynes technology's Semiconductor plant's production has started. This isn't just collaboration, it's a reflection of the speed at which India's semiconductor ecosystem is developing."
PM Modi also interacted with operators and engineers after inaugurating the plant.
The commercial production will start with the manufacturing of advanced Intelligent Power Modules (IPMs), which are critical components for automotive and industrial applications requiring compact, efficient, and reliable power switching systems.
Each module comprises 17 chips and will be supplied to California-based Alpha and Omega Semiconductor (AOS).
When all phases of the plant are completed, it will have the capacity to produce 6.33 million units per day.
The project holds particular significance as it establishes India's second OSAT/ATMP (Outsourced Semiconductor Assembly and Test / Assembly, Testing, Marking, and Packing) unit entering the production phase. It also marks the entry of an Indian-origin Electronics Manufacturing Services (EMS) player into semiconductor manufacturing, thereby strengthening domestic capabilities, said PIB in a statement.
The facility will contribute to building indigenous semiconductor packaging capacity, addressing a critical gap in India's chip ecosystem, and furthering the vision of self-reliance in high-technology manufacturing.
Ahead of the inauguration, Gujarat Science and Technology Minister Arjun Modhwadia said the facility would manufacture more than seven lakh chips per day. He said the project as a major step in India's entry into a new technological era and credited the Prime Minister's leadership for turning challenges into opportunities.
Modhwadia said the new unit signals the beginning of a futuristic industry in India and reflects the government's determination to strengthen the country's position in advanced technology manufacturing.
Earlier this year, in February, Prime Minister Modi had also inaugurated the Micron semiconductor plant and said, "The MoU for this facility was signed in June 2023, the foundation stone was laid in September, and by February 2026, commercial production had already begun. Even in developed countries, such approvals and processes take years, but India has completed this seemingly impossible task in just 900 days. When intentions are clear, and dedication is towards rapid national development, policies become decisive, and decisions gain momentum naturally," ANI reported
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