Cabinet OKs Rs 33.07 billion Kaynes Chip Assembly and Packaging Unit
Technology

Cabinet OKs Rs 33.07 billion Kaynes Chip Assembly and Packaging Unit

The Union Cabinet approved the establishment of India's fifth semiconductor facility, which will be set up by Kaynes Technology in Sanand, Gujarat. This assembly, testing, marking, and packaging (ATMP) unit will involve an investment of Rs 33.07 billion and will have a production capacity of 6.3 million chips per day.

Union Minister of Electronics and IT Ashwini Vaishnaw, at a press briefing following the Cabinet meeting, announced that the Cabinet had approved the Kaynes Technology plant. He described it as a large facility, covering 46 acre, with significant production expectations. The industries that will receive chips from this plant have already been secured, according to the minister.

He further mentioned that the majority of the chips produced at this facility will be used in power-related equipment for trains, automobiles, and home appliances.

The Kaynes ATMP project marks the fifth semiconductor unit approved under the Rs 760-billion India Semiconductor Mission (ISM). This follows earlier approvals for semiconductor facilities by Micron, Tata, and CG Power in Gujarat, as well as another Tata project in Assam.

In June 2023, the Cabinet had approved a proposal for a semiconductor unit in Sanand by the US-based memory chip giant Micron. Subsequently, in February this year, three more semiconductor units were approved: Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam; CG Power is establishing an outsourced semiconductor assembly and test (OSAT) unit in Sanand.

According to an official press release from the government, the construction of all four previously approved semiconductor units is progressing rapidly, contributing to the development of a robust semiconductor ecosystem in the region. These units are expected to attract nearly Rs 1.5 trillion in investment and have a cumulative production capacity of about 70 million chips per day.

Vaishnaw added that the construction of the Micron facility is advancing well, with the first made-in-India chip expected to be produced by mid-2025.

The India Electronics and Semiconductor Association (IESA) expressed gratitude to the Ministry of Electronics and IT and ISM for their support in approving the Kaynes project.

The Union Cabinet approved the establishment of India's fifth semiconductor facility, which will be set up by Kaynes Technology in Sanand, Gujarat. This assembly, testing, marking, and packaging (ATMP) unit will involve an investment of Rs 33.07 billion and will have a production capacity of 6.3 million chips per day. Union Minister of Electronics and IT Ashwini Vaishnaw, at a press briefing following the Cabinet meeting, announced that the Cabinet had approved the Kaynes Technology plant. He described it as a large facility, covering 46 acre, with significant production expectations. The industries that will receive chips from this plant have already been secured, according to the minister. He further mentioned that the majority of the chips produced at this facility will be used in power-related equipment for trains, automobiles, and home appliances. The Kaynes ATMP project marks the fifth semiconductor unit approved under the Rs 760-billion India Semiconductor Mission (ISM). This follows earlier approvals for semiconductor facilities by Micron, Tata, and CG Power in Gujarat, as well as another Tata project in Assam. In June 2023, the Cabinet had approved a proposal for a semiconductor unit in Sanand by the US-based memory chip giant Micron. Subsequently, in February this year, three more semiconductor units were approved: Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and a testing and assembly unit in Morigaon, Assam; CG Power is establishing an outsourced semiconductor assembly and test (OSAT) unit in Sanand. According to an official press release from the government, the construction of all four previously approved semiconductor units is progressing rapidly, contributing to the development of a robust semiconductor ecosystem in the region. These units are expected to attract nearly Rs 1.5 trillion in investment and have a cumulative production capacity of about 70 million chips per day. Vaishnaw added that the construction of the Micron facility is advancing well, with the first made-in-India chip expected to be produced by mid-2025. The India Electronics and Semiconductor Association (IESA) expressed gratitude to the Ministry of Electronics and IT and ISM for their support in approving the Kaynes project.

Next Story
Infrastructure Transport

Tiwari Hata Wall Demolished for 3.5-km Heritage Corridor Project

The demolition of the boundary wall of the Tiwari Hata complex began late Tuesday night as part of the 3.5-kilometre Heritage Corridor project, a key initiative led by chief minister Yogi Adityanath to boost urban development in Gorakhpur. The Tiwari Hata property, once home to late politician Harishankar Tiwari, has recently gained renewed attention after the arrest of Samajwadi Party leader Vinay Shankar Tiwari in a money laundering case. PWD executive engineer AK Singh said demolition is underway in areas marked by the Public Works Department as part of the road widening effort. Some resi..

Next Story
Building Material

Arcelor Mittal Nippon Steel Plans Rs 600 Bn Green Steel Investment

ArcelorMittal Nippon Steel (AM/NS) India has unveiled a Rs 600 Bn investment plan aimed at expanding capacity, increasing the use of recycled scrap, and scaling up renewable energy to qualify for a three-star rating under India’s new carbon emission standards. The steelmaker said these steps align with India’s Green Steel Taxonomy, set to roll out in the financial year 2026–27. AM/NS India aims to become the first integrated steel company to achieve the top rating. Currently, sixty-five per cent of the company’s steel capacity comes from the Direct Reduced Iron method, which uses nat..

Next Story
Infrastructure Urban

Kaushalya Logistics Adds Katihar Depot to Boost Cement Distribution

Kaushalya Logistics has commenced operations at its latest facility in Katihar, Bihar, under the carrying and forwarding agent model for Ambuja Cements, part of the Adani Group. The move marks another step in the firm’s expansion in integrated logistics services. With the Katihar Depot, the company now operates fifteen depots under the CCFA model. The new facility is projected to handle over six thousand tonnes of cement every month, strengthening Ambuja Cements’ supply chain in eastern India. This addition brings Kaushalya Logistics’ total depots and rake points to one hundred and thr..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?