Cabinet approves ₹3,300 crore for Kaynes Semicon plant in Gujarat

Union Cabinet approves semiconductor unit in Sanand, Gujarat by Kaynes Semicon Pvt Ltd with 50% capital investment fiscal support.

The Union Cabinet on Monday (September 2, 2024) approved a semiconductor unit in Sanand, Gujarat to be set up by Kaynes Semicon Pvt Ltd.

The approval flows from the India Semiconductor Mission’s modified scheme for setting up semiconductor fabs, which provides for 50% capital investment fiscal support; the scheme has an outlay of ₹76,000 crore. The plant will see an initial investment of ₹3,300 crore.

The facility will have a capacity of six million chips a day. “The chips produced in this unit will cater to a wide variety of applications, which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.,” the government said in a press note.

Earlier in February, the Centre approved three semiconductor units. While Tata Electronics is receiving support under the scheme for setting up a semiconductor fab at Dholera in Gujarat and a semiconductor unit at Morigaon in Assam, CG Power is being assisted for setting up a semiconductor unit in Sanand.