India opens major semiconductor plant in Gujarat
India inaugurated a Rs 3,300 crore semiconductor plant in Sanand, Gujarat as part of a push to become a regional chip supplier and bridge to Silicon Valley — policymakers framed the move as strengthening global supply‑chain resilience amid a bifurcating chip market. This expansion is positioned to affect future sourcing for SoC and component availability. (thehindu.com) (timesofindia.indiatimes.com)
Kaynes Technology’s Sanand unit is an outsourced semiconductor assembly-and-test (OSAT/ATMP) facility that began commercial production and was formally inaugurated by the Prime Minister on March 31, 2026. (pmindia.gov.in) The site’s design target is roughly 6.33 million chips per day once all phases are completed, with capacity being ramped in stages rather than delivered immediately at that peak rate. (manufacturing.economictimes.indiatimes.com) Kaynes has already produced and shipped pilot batches of Intelligent Power Modules (IPMs) — each module integrating about 17 dies — to Sunnyvale‑headquartered Alpha & Omega Semiconductor (AOS) as part of a multi‑year supply agreement. (kaynestechnology.co.in) The project was approved by the Union Cabinet on September 2, 2024 and carries a reported total capex of around ₹3,307–3,300 crore with phased public support under the India Semiconductor Mission. (business-standard.com) Funding disclosed for the Sanand OSAT splits roughly 50% central support (≈₹1,653.5 crore), 20% from the Gujarat government (≈₹661.4 crore) and 30% company equity (≈₹992.1 crore). (economictimes.indiatimes.com) The plant sits in Sanand GIDC (about 46 acres as reported at approval) and follows Micron’s February 28, 2026 ATMP inauguration in the same district, making Kaynes the second operational unit under India’s Semiconductor Mission. (business-standard.com / thehindu.com) Kaynes and partners (including Mitsui) positioned the Sanand output toward automotive and industrial power markets—specifically EV and power‑management modules—which are already booked for export to U.S. customers according to officials and company disclosures. (manufacturing.economictimes.indiatimes.com / moneycontrol.com)
