PM Narendra Modi is set to inaugurate Kaynes Semicon’s ₹3,300 crore OSAT facility in Sanand on March 31. This project, part of the India Semiconductor Mission, will boost the local economy and establish Sanand as a key chip packaging cluster.
Prime Minister Narendra Modi is set to inaugurate Kaynes Semicon’s OSAT facility in Sanand on March 31. This project was approved by the Union Cabinet on September 23, 2024, under India’s Semiconductor Mission. With an investment of ₹3,300 crore, the project will further strengthen the semiconductor ecosystem in Sanand.
Sanand’s Growing Semiconductor Ecosystem
Prime Minister emphasised that the development of the semiconductor sector in India will make this decade the biggest turning point for the country’s tech future. Following the launch of the Micron plant, the commencement of Kaynes Semicon’s OSAT facility will further boost local economic development. OSAT (Outsourced Semiconductor Assembly and Test) involves testing and packaging chips before delivering them to the market. According to estimates, the plant to be inaugurated on March 31 will produce 60 lakh chips per day.
Rapid Project Execution
Earlier, in February, Prime Minister Narendra Modi inaugurated the Micron semiconductor plant. On this occasion, highlighting the project’s speed, he stated, “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.”
Sanand: From Auto Hub to Chip Cluster
In a very short period, Sanand has witnessed a remarkable transformation in its industrial development. Along with Micron Technology and Kaynes Semicon, a plant is also being set up by CG Semi. Once known as an automobile hub, Sanand is now emerging as India’s first chip packaging cluster and a key centre in the global semiconductor value chain. Like Hsinchu City in Taiwan and Gyeonggi in South Korea, Sanand is developing as a semiconductor hub in India.
India’s National Semiconductor Strategy
The Prime Minister stated, “Our goal is not limited to setting up a factory, but to building a complete ecosystem. India is now focusing on the entire semiconductor value chain, including all levels from design engineers to machine manufacturers and logistics. The announcement of ‘India Semiconductor Mission 2.0’ is a major step in this direction. As production increases, the demand for materials and components within India will also grow, creating the biggest opportunity for domestic industries.”
India is becoming an important part of the global semiconductor value chain. He added that efforts begun during the COVID period are now delivering results, with 10 major projects approved under the Semicon India Programme so far, including four in Gujarat. (ANI)
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